CHANGES IN CHINA'S URBAN FOOD CONSUMPTION AND IMPLICATIONS FOR TRADE

Detailed data from 3,500 urban Chinese households are used to estimate demand elasticities and the impacts of regional and demographic variables for 17 food products through a two-stage budgeting procedure with complete demand systems. Results suggest that China's food consumption patterns will continue to shift from grains to high value food products and the ongoing transition in food consumption will affect China's domestic food markets and trade behavior.