ESSENTIAL COMMODITY CONSUMPTION: A STUDY ON FOOD CONSUMPTION EXPENDITURE OF RURAL SOCIETY
Submited : January 7, 2021
Published : January 14, 2021
The primary commodity consumed by people is reflected in the highest expenditure to fulfill it within a specific period, the dominance of expenditure in all consumption expenditures indicates the importance of commodities in all households' consumption. This study aims to identify the dominant consumption patterns of food commodities using descriptive analysis of 6,178 households obtained through national secondary data from the 2017 national socio-economic survey (Susenas). Several commodities categorized by largest to smallest expenditure are the basis for determining the largest consumption expenditure as essential commodities. Based on the ranking of consumption expenditures, the three most prominent consumption groups were identified, namely: (1) rice, (2) rice with assortment of side dishes, and (3) fish. Rice, detected through 4,771 households, is the largest consumption commodity, and expenditure on this commodity increases in line with the rise in income, reflected in the mean value of expenditure which is higher in the increasing income group. The expenditure of rice with assortment of side dishes was detected through 3,150 households and had the same tendency as rice, particularly increased expenditure in the higher income groups. Fish consumption expenditure was detected through 3,488 households following the conditions for the two previous commodities, and expenditures increased with higher income. The increased expenditure on the consumption of essential commodities by income groups demonstrates that the tendency to consume is in accordance with Keynes's relationship between consumption and revenue. The higher the income, the greater the consumption expenditure. However, to a certain extent, the specific relationship is that the proportion of increased consumption expenditure decreases with higher income. Based on the elasticity coefficient, it was found that three essential commodities were normal goods. However, the level of consumption sensitivity to rice and fish income was higher than for processed food. In contrast to elasticity, the tendency to consume processed food is higher; the share of the increase in revenue is used to increase consumption of processed food, compared to adding rice and fish. This finding acts as provisional evidence that food consumption has undergone a fundamental change to become more consumptive.
Anshori M and Iswati S. 2017. Quantitative Research Methodology. Surabaya: Airlangga University Press.
Arikunto, S. 2013. Procedure Research: A Practical Approach. Jakarta: Rineka Cipta.
Bungin, B. 2017. Quantitative Research Methods: Communication, Economics, and Public Policy, and other social sciences. Edition 2. Jakarta: Kencana.
BPS, 2017. Central Sulawesi Province in Figures. Catalog 1102001.72
BPS, 2017. Micro Data, Module Household Consumption in Central Sulawesi.
Caron, Justin and Fally, Thibault. 2018. Per Capita Income, Consumption Patterns, and CO2 Emissions. Papers conference and seminar. (on-line) obtained from https://are.berkeley.edu/~fally/Papers/CO2paper.pdf
Ichwan, M., Moelyono, M., Yusuf D. 2020. Consumption Patterns of Rural Community: A Study of Five Food Commodities Expenditure In Central Sulawesi. Russian Journal of Agricultural and Socio-Economic Sciences. https://rjoas.com/issue-2020-05
Lee, Seonglim., Sohn, Sang-Hee., Rhee, Eunyoung., G. Lee, Yoon., Zan, Hua. 2014. Consumption patterns and economic status of older households in the United States. Statistics Monthly Labor Review. US Bureau of Labor. (online) obtained from https://www.bls.gov/opub/mlr/2014/article/pdf/consumption-patterns-and-economic-status-of-older-households.pdf
Marpaung, Harum. M. 2006. Community Consumption Patterns: Profile of Consumer Buying Behavior, DI Yogyakarta. E-Journal of Phenomenon: vol. 4 No. 2.ISSN: 1693-4296. Directorate of Research and Community Service, Islamic University of Indonesia. Yogyakarta.
M. Fasoranti Mary. 2014. The Determinants of Consumption Pattern Among Rural Dwellers of Ondo State Case Study of Akoko North west Local Government. European Scientific Journal.
Nicholson, W. 2005. Microeconomic Theory: Basic Principles And Extension. 9th Edition. Ohio: South-Western, Thomson Corporation.
Purwaningsih, Y., Hartono, S., Masyhuri, Mulyo, JH 2010. Analysis of Household Expenditure Patterns by Level of Food Security in Central Java Province. Journal of Development Economics, Volume 11, Number 2, December 2010, pp. 236-253.
Racelis, Rachel H. and Ian Salas, JM 2008. Have Lifecycle Consumption and Income Patterns in the Philippines. Discussion Paper Series No. 2008-11. Philippine Institute for Development Studies. (on-line) available from https://www.ntaccounts.org/doc/repository/RS2008b.pdf
Pindyck, Robert S. and Rubinfeld, Daniel L. 2018. Microeconomics, 9th Edition, Global Edition. Pearson Education Limited.
Salvatore, Dominick. 2006. Microeconomics: Schaum, s Outlines, ed fourth. Translation: Rudy S and Haris M. Jakarta: Erlangga.
Sayekti, A. Ayiek Sih. 2009. Patterns of Household Food Consumption in Historical Areas of Rice and Non-Rice Food in Indonesia. Faculty of Agriculture, Instiper, Yogyakarta. Thing. 201-218.
Sethi, Narayan and Pradhan, Hemanta Kumar. 2012. The Patterns of Consumption Expenditure in Rural Households of Western of India: an Engel Ratio Analysis. OIDA International Journal of Sustainable Development. Ontario International Development Agency, Canada ISSN 1923-6654 (print) ISSN 1923-6662 (online) available at www.oidaijsd.com http://www.ssrn.com/link/OIDA-Intl-Journal-Sustainable-Dev.html
Sharma, R., Trung Thanh Nguyen., and Grote, Ulrike. 2018. Changing Consumption Patterns — Drivers and the Environmental Impact. Sustainability, 10, 4190. (on-line) obtained from https://www.mdpi.com/2071-1050/10/11/4190/pdf/1
Sugiyono. 2011. Quantitative, Qualitative, and R & D Research Methods. The 13th edition. Bandung: Alfabeta.
Zhu, Di. 2011. Consumption patterns of the middle class in contemporary China: a case study in Beijing. Journal of Sustainable Development. (on-line) obtained from https://www.research.manchester.ac.uk/portal/files/54507982/FULL_TEXT.PDF