An Estimation of Expenditure, Own and Cross Price Elasticities of Meat in Pakistan

This paper aims to estimate the expenditure, own and cross price elasticities of meat in Pakistan. Working-lesser model is used to estimate elasticities using cross-sectional data from Household Integrated Economic Survey of Pakistan for the year 2013-14. Economic factors such as food commodities prices, households’ income and their socioeconomic characteristics are included in the model. The results reveal that on the average, households in rural region spend more on the food items while, urban households spend more on non-food items. Expenditures on beef is noted highest for both urban and rural region followed by chicken, fish and other meat type (Eggs, Shrimps, Prawns). Empirical results show that for all the selected meat type expenditure elasticities are positive suggesting them as normal goods. The expenditure elasticities for mutton and beef are greater than one and are expenditure elastic while chicken, fish and other meat type are expenditure-inelastic. Own-price elasticities for the beef, chicken, fish and mutton are less than unity suggesting them as price-inelastic except other meat type which is highly price-elastic. Cross price elasticities show that most of the meat types are complementary. Others meat category, chicken and fish in both the rural and urban regions are price inelastic confirms that they are having important role in the balanced diet and sustenance of Pakistani household therefore this study recommends promoting of chicken and fish production in both the rural and urban regions of Pakistan.