Income distribution, consumption patterns and consumption linkages in rural Sierra Leone

THIS PAPER PRESENTS FINDINGS FROM A STUDY OF CONSUMPTION PATTERNS IN RURAL SIERRA LEONE. THE OBJECTIVES OF THE STUDY WERE: (1) TO DESCRIBE CONSUMPTION PATTERNS, (2) TO ESTIMATE INCOME ELASTICITIES FOR PURPOSES OF PROJECTING CONSUMER DEMANDS FOR SPECIFIC INCOME LEVELS ON LABOR, CAPITAL, AND FOREIGN EXCHANGE REQUIREMENTS; AND (3) TO DETERMINE THE NATURE AND STRENGTH OF CONSUMPTION-BASED LOCATIONAL LINKAGES. THIS PAPER GIVES THE DEMOGRAPHIC CHARACTERISTICS OF THE SAMPLE POPULATION, THE DATA COLLECTION PROCEDURES, THE INCOME CLASSES AND COMMODITY GROUPS STUDIED, AND INCOME DISTRIBUTION FOR THE SAMPLE HOUSEHOLDS. BUDGET SHARES FOR EACH COMMODITY ARE PRESENTED, AND SEASONAL PATTERNS OF CONSUMER EXPENDITURES ARE ANALYZED. THE SAMPLE POPULATION CONSISTED OF 203 HOUSEHOLDS VISITED TWICE WEEKLY FOR ONE YEAR. RESULTS OF THE STUDY SHOW THAT INCOME AVERAGES $128 PER CAPITA, WITH INCOME DISTRIBUTION RATHER UNIFORM. ALMOST HALF OF ALL RURAL CONSUMPTION EXPENDITURES IN SIERRA LEONE ARE ON SUBSISTENCE CONSUMPTION ITEMS. ESTIMATED EXPENDITURE ELASTICITIES OF DEMAND AT THE MEAN INCOME LEVEL WERE QUITE HIGH (0.9) FOR FOOD COMMODITIES, INCLUDING RICE, THE STAPLE FOOD. THE ESTIMATED ELASTICITY FOR MEAT WAS HIGH (1.8). A MAJOR PROPORTION OF INCREASED RURAL INCOMES IS SPENT ON COMMODITIES PRODUCED IN RURAL AREAS. THE NEXT MOST IMPORTANT SOURCE OF GOODS FOR RURAL CONSUMERS IS FROM IMPORTS OF SUCH COMMODITIES AS CLOTH, SHOES, AND COOKING WARE.