A Note On Consumption Patterns in the Rural Areas of East Pakistan

Mohammad Irshad Khan


The main purpose of this paper is to present estimates of
income elasticities for various commodity groups in East Pakistan. To
date no such studies have been conducted in that province; and estimates
made in other areas of the subcontinent have only limited applicability.
Analysis of consumption patterns is essential for development planning
because priorities and investment targets have to be based on demand
forecasts for different commodities. Forecasting demand requires, among
other variables, reliable estimates of income elasticities. In addition,
knowledge about elasticities can be useful in deciding taxation policies
and other controls over consumption. Further, in countries like Pakistan
where large quantities of surplus foods are imported under the United
States PL 480 programme, knowledge of income elasticities and regional
patterns of consumption is important to permit effective utilization of
these imports for economic development.

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DOI: https://doi.org/10.30541/v3i3pp.399-413


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