Expenditure patterns on foodservice in Malaysia / Tey Yeong Sheng ... [et al.]

Rapid changes have occurred in the way food is prepared, in the way it
is cooked, and in the places it is consumed. Foodservice has become
increasingly important in the composition of the food account among
Malaysians. The objective of this study is to analyze consumers’ expenditure
pattern on foodservice in Malaysia. Several functional forms and a Heckman
two-step methodology to account for censored-response bias are employed
in the analysis of Household Expenditure Survey 2004/2005 data. Regardless
of functional forms, the empirical estimates of income elasticity of demand
for foodservice are significantly bigger than income elasticity of demand for
food at home. This study shows positive prospect for foodservice industry
in Malaysia, where an increase in income has the propensity to lead to an
increase in expenditure (demand) on foodservice.