Factors Affecting Consumption Expenditure in Ethiopia: The Case of Amhara National Regional State (ANRS)
Background: The studies on consumption expenditure are important as it is related to poverty. Households with lowest total expenditure, a greater proportion of percentage expenditure spent on basic needs such as food and housing, then this results the household being more resources constrained (poorer) as a result.
Objective: The study attempts to analyze the impact of demographic and socioeconomic characteristic of households on consumption expenditure in the Amhara National Region State (Ethiopia) using the latest Household Consumption Expenditure Survey (HCES) 2015/16.
Methods: The study applied quantile regression model to identify determinants of consumption expenditure by considering per capita consumption expenditure as a dependent variable. We analyzed conditional consumption expenditure on OLS and at 7 selected quantiles: 0.05, 0.10, 0.25, 0.50, 0.75, 0.90, and 0.95 which will be denoted by , , …, and . The quantile effect of categorical variables is calculated based on Kennedy (1981) approach.
Results: Households those own residential house, were headed by educated persons and whose household heads were employed (generating income) expends more. On the other hand, households headed by females expends less. Based on marital status unmarried household heads consumption expenditure is less than households who are married (or living together) at all quantiles except at the 95thquantile, while unmarried consumption expenditure is more than widowed, and divorced (or separated) at 90th& 95thquantile and 50th ,75th ,90th& 95thquantile respectively.
 Barigozzi M., Alessi L., Capasso M., & Fagiolo G. (2009). The distribution of households consumption-expenditure budget hares. Available at: https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1061.pdf.
 Caglayan, E. & Astar M. (2012)..A micro econometric analysis of household consumption expenditure determinants for both rural and urban areas in Turkey. American International Journal of Contemporary Research, 2(2), 27-34.
 CSA of Ethiopia. (2018). The 2015/16 Ethiopian household consumption expenditure (HCE) survey results for country level, Statistical Report. Statistical Bulletin 585, Addis Ababa, Ethiopia.
 CSA of Ethiopia. (2013). Population projection of Ethiopia for all Regions at Wereda level from 2014-2017. Addis Ababa, Ethiopia.
 CSA. (2016 Apr). Welfare monitoring survey 2015/16 statistical report, Indicators on living standards, accessibility. Household Assets Volume II, Addis Ababa.
 Gounder N. (2012 June), The determinants of household consumption and poverty in
Fiji. Available at: https://pdfs.semanticscholar.org/890c/b7fa8029f836a94b84b4888c9f679a4a80f3.pdf.
 Kennedy, P. (1981). Estimation with correctly interpreted dummy variables in semi logarithmic equations. American Economic Review, 71(4), 801.
 Koenker, R. (2000). Quantile regression. Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.394.3210&rep=rep1&type=pdf.
 Koenker, R. & Basset G. (1978). Regression quantiles. Econometrica, 46(1), 33-50.
 Lewis J. (2014). Income, expenditure and personal wellbeing. Available at: https://www.ukdataservice.ac.uk/media/455199/lewis.pdf.
 Nebebe, A.F. & Rao, C.A. (2016). Determinants of income inequality in Urban Ethiopia a study of South Wollo Administrative Zone. Amhara National Regional State. International Journal of Applied Research, 2(1): 550-563.
 MoFED of Ethipia. (2012). DPRD, Ethiopia’s progress towards poverty: An interim report on poverty analysis study (2010/11). Addis Ababa, Ethiopia.
 Mor K. & Sethia S. (2018). Factors that influence household and individual food consumption: A review of research and related literature. Gyan Pratha-Accman Journal of Management, 5(2), 75-86.
Copyright (c) 2020 International Journal of Engineering and Management Research
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.