Economic factors influencing fresh fruit and vegetable expenditures in South Korean households
Madhavan Nambiar, Padmanand
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This study identifies consumer and household characteristics, geographical locations and opinions and views of the respondents that influence the expenditure on fresh fruit and vegetable, using a survey data collected from 1,100 female residents of seven urban centers in the Republic of Korea. Two separate equations for fresh fruit and vegetable expenditures were estimated using the OLS after determining that the Heckman’s procedure was not applicable. Results provide insights for the formulation of profiles for consumers according to their expenditures. Calculated elasticities for household income, education, age and number of adults in the case of fresh vegetable expenditure are 0.21, 0.32, 0.39 and 0.31, respectively. Elasticities for income, education and number of adults in the case of fresh fruit expenditure are 0.30, 0.30 and 0.16, respectively. Knowledge from this study is useful for fresh produce strategies by food manufacturers and for public health education led by the government agencies.