Empirical Analysis on the Factors Affecting the Consumption of Aquatic Products in China Using Panel Data

Abstract China is the world’slargest producer of aquatic products and its fishery sector is comprised primarily ofaquaculture facilities, both fresh and seawater, and amuch smaller wild catch component. The expansion ofthe aquaculture sector continues to boost China’saquatic output. The increase is attributable to severalfactors. Among them rapidly growing domestic demand is no doubt one of the most important reasons.Rapid economic growth and rising disposable income are influencing domestic consumption and theeconomic recovery of major importmarkets is further stimulating consumption of China’saquatic products. This paper tries to examine the status, trend and reasons of consumption of aquatic products in China.Based on the analysis on the consumption of aquatic products and its change, this paper utilizes panelregression model to estimate the affecting factors of aquatic products consumption in China. By using paneldata between 1997 and 2010, the results indicate that income, urbanization, aging and dummy variable havepositive effects and fish price index has negative effect on China’saquatic products consumption aspredicted. However, effects of meat consumption and education on fishery consumption are totally oppositewith our predictions. In other words, it turns out that meat consumption has positive effect on fishconsumption while education turns out to have negative effect. Finally the member of household does notshow any significanteffecton consumption of aquatic products in China. Keywords : Aquatic product, Consumption, Panel data, Fixed effect model, Random effect model, Hausmantest