Abstract

In this study, shifting structure of world rice consumption is examined using various rice-consumption models associated with two Asian countries’ data: India and China. The models are tested in terms of statistical significance, economic theory and mathematical rules. The models containing a maximum point entails convergence analysis. The convergence analysis illustrates either how fast countries approach a maximum level of rice consumption or how fast they come to initial rice consumption levels from the maximum. Contrary to common belief, empirical results indicate that rice turns into a “traditional good” from an inferior good.

Key words: Rice consumption, mathematical models, convergence, rice.