Analysis of Rural Household Consumption Expenditure in South Africa: The Case of Food Plot Holders in Tyefu Irrigation Scheme in the Eastern Cape Province / Analise Van Verbruiksbesteding Van Landelike Huishoudings in Suid-Afrika: 'N Gevallestudie Van Kleinboere in Tyefu Besproeiingskema in Die Ooskaap Provinsie

Abstract

Policy formulation in relation to rural development requires research on rural household consumption behaviour and patterns. In this paper research implications of consumption function theory in relation to rural household expenditures are briefly outlined and results of a cross-section analysis of seven expenditure categories of food plot holders at Tyefu Irrigation Scheme are reported. Consumption function parameters are estimated by ordinary least square method of regression of farm account data. The analysis reveals that the sampled food plot holders have a marginal propensity to consume of (0.349) as well as average propensity to consume of (0.652). Family characteristics (used as explanatory variables) such as age distribution and family size vary in their ability to explain expenditure patterns depending upon types of commodity. Further research will help to rigorously assess the impact of additional forces such as education, location, farm assets, etc. upon the standard of living of farm people. ANALISE VAN VERBRUIKSBESTEDING VAN LANDELIKE HUISHOUDINGS INSUID-AFRIKA: 'N GEVALLESTUDIE VAN KLEINBOERE IN TYEFU BESPROEIINGSKEMA IN DIE OOSKAAP PROVINSIE Beleidsformulering vir landelike ontwikkeling, benodig navorsing in die verbruikersgedrag en -patrone van landelike huishouding. In hierdie artikel, word navorsingsimplikasies van verbruiksfunksieteorieë in verband met landelike huishoudelike uitgawes, kortliks geskets en uitslae van 'n deursnee analise van sewe uitgawe katogorieë van kleinboere by Tyefu Besproeiingskema gegee. Parameters van 'n verbruikerfunksie is beraam deur middel van 'n gewone kleinstekwadraat regressie van plaasrekening data. Die analise bevind dat die respondente 'n marginale neiging om te verbruik van 0.349 as ook 'n gemiddelde neiging van verbruik van 0.652 het. Familie eienskappe (gebruik as 'n verklarende veranderlike) soos ouderdomsverspreiding en familie grotes varieer in hulle vermoë om verduidelike uitgawe-

The Issue of Measuring Household Consumption Expenditure

“…the size and composition of households (Mulamba 2022) as there is no consensus in empirical studies on the rate of household expenditure on food or on the normalization procedure; however, in connection with the works of Enger (1985), it is important to normalize information and use the share of expenditure on food for testing; -unitary models in which household consumption behavior is considered representative or a summary of all household members (Attanasio and Lechene 2014;Belete et al 1999;Chai and Moneta 2010;De Vreyer et al 2020). These models do not take into account heterogeneity in households or they do not cover the influence of household members on behavioral patterns and household consumption.…”

Factors Affecting Household Expenditure using OLS Method: A Case Study of Ward Number 6 of Sidhalek Rural Municipality, Dhading, Nepal

“…Sakiru (2013) applied the regression method to identify important socio-economic characteristics, household characteristics, and/or community characteristics associated with household welfare. Other researchers such as Belete, et al, (1999), Ajmair and Akhtar (2012), Sekhampu and Niyimbanira (2013), Hone and Marisennayya (2019), Bakri, et al 2017), and Zeynaloya and Mammadli (2020) applied the OLS regression method to identify the important socio-economic characteristics, household characteristics, and/or community characteristics associated with household expenditure. Since the response variable of the study was annual household expenditure, the ordinary least square (OLS) regression method was used to investigate the relationship between the response variable and explanatory variables.…”