Linear Approach Almost Ideal Demand System Analysis of Main Vegetables in Lagos State, Nigeria

Abstract

The World Health Organization estimated that low vegetable intake was a factor enhancing high mortality all over the world. Studies have shown that the level of vegetable intake in Nigeria was low. Despite relatively cheap and abundant sources of micro nutrients found in vegetables, wide spread cases of micro nutrient deficiencies are still common in the study area. Thus, this study examined the demand for main vegetables in Lagos state. The result revealed that the average monthly consumption per household was 21kg and 16kg in urban and rural Lagos respectively. However, the average monthly expenditure per household was N2, 905.83 in urban and N2, 698.60 in rural areas of Lagos state. The result indicated that the coefficient of determination (R2) falls between 0.54 and 0.92. In both areas the coefficients of all own price, and cross price parameters and household size are all statistically significant at varying levels of probabilities. Own price elasticity of demand for vegetables indicated that urban and rural areas are elastic and inelastic, respectively. The values of income elasticity of demand are positive and greater than 1, hence the demands for all the vegetables are elastic in nature in both areas. The cross price elasticities for both urban and rural areas have negative signs and are therefore complementary goods. Policies and strategies that would make vegetables available throughout the year should be vigorously pursued. Furthermore, to enhance vegetable consumption in the area, the public should be enlightened on the health benefits of vegetables.