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FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL ECONOMICS *** ECONOMETRICS REPORT FACTORS AFFECTING THE DEMAND FOR RED MEAT IN COUNTRIES AROUND THE WORLD IN 2021 Class: KTEE318(GD2-HK2-2122).1 Lecturer: Dr Dinh Thi Thanh Binh Name: Group Student’s name: Nguyễn Quỳnh Anh Number Student ID Contribution 02 2013450004 100% Nguyễn Thanh Hằng 20 2013450016 100% Phạm Khánh Linh 44 2013450032 100% Nguyễn Vân Thùy Linh 42 2013450029 100% Đỗ Thùy Linh 37 2014450210 100% Hanoi, June 2022 ECONOMETRICS KTEE318.1 GROUP DECLARATION The research “Factors affecting the demand for red meat in countries around the world in 2021” was carried out by Group 4, consisting of members: Nguyen Quynh Anh, Nguyen Thanh Hang, Pham Khanh Linh, Do Thuy Linh and Nguyen Van Thuy Linh We hereby declare that we have collected the data and conducted the research ourselves We not use any outside help and support or use information not mentioned at the References of this Research Hanoi, 15/06/2022 Page ECONOMETRICS KTEE318.1 GROUP ACKNOWLEDGEMENTS Our group sincerely appreciates all the lectures that Dr Dinh Thi Thanh Binh gave us! During the course time and the period we created this essay, you provided us with a wide range of valuable and interesting knowledge along with a lot of support and dedication whenever we had difficulties in studying Econometrics For us, it is our honor and lucky to have a wonderful teacher like you We put all our efforts on completing this essay as results of what we gained after the course Our essay may have shortcomings but we really hope that you will enjoy this essay and give us suggestions and comments so that we can be better for the next time If we have a chance, we hope that you will accompany us in many subjects in the future Thank you so much for everything you taught us! We will keep this knowledge in mind as long as possible Have a great day and stay healthy our dear teacher! Group Page ECONOMETRICS KTEE318.1 GROUP SUMMARY Topic: FACTORS AFFECTING THE DEMAND FOR RED MEAT IN COUNTRIES AROUND THE WORLD IN 2021 Student’s name - Student ID: Nguyễn Quỳnh Anh - 2013450004 Nguyễn Thanh Hằng - 2013450016 Phạm Khánh Linh - 2013450032 Nguyễn Vân Thùy Linh - 2013450029 Đỗ Thùy Linh - 2014450210 Class: KTEE318(GD2-HK2-2122).1 Lecturer: Dr Dinh Thi Thanh Binh Faculty: International Economics Keyword: red meat, demand, factors, the world Our essay has the title: “Factors affecting the demand for red meat in countries around the world in 2021” This essay investigated the demand for meat in 123 countries around the world in 2021 using the econometrics method The objective of our essay is to demonstrate the accuracy of Demand Function in Microeconomics and to estimate the change in demand for red meat through the relationship between demand and other factors such as price of red meat, price of chicken meat, income and culture in the world market We collected data from valid sources like WORLDBANK, NUMBEO and FAOSTAT The data were analysed using the Ordinary Least Square method and multiple regression analysis Results show strong agreement with theoretical predictions, which is that the demand for red meat is influenced by price of beef, price of chicken meat, income positively The results of hypothesis testing reveal a reverse relationship between demand for red meat and consumer’s taste and between demand for red meat and its price, according to the Demand Function The work presented here recommends that the government should implement policies to increase income per capita to augment demand for red meat Page ECONOMETRICS KTEE318.1 GROUP TABLE OF CONTENTS INTRODUCTION SECTION 1: LITERATURE REVIEW 1.1 Definition and Theory of Demand 1.1.1 Demand 1.1.2 Factors affecting quantity demanded 1.2 Overview of the demand for red meat 10 1.3 Related published researches 11 1.4 Research hypothesis 14 SECTION 2: MODEL SPECIFICATION AND DATA 15 2.1 Methodology 15 2.1.1 Method used to derive the model 15 2.1.2 Method used to collect and analyze the data 15 2.2 Theoretical model specification 15 2.2.1 Proxy to measure 15 2.2.2 Specify the model 16 2.2.3 Theoretical relationship between dependent variable and independent variables 17 2.3 Data description 18 2.3.1 Sources of data 18 2.3.2 Descriptive statistics and interpretation for each variable 18 2.3.3 Correlation matrix between variables 20 SECTION 3: ESTIMATED MODEL AND STATISTICAL INFERENCES 21 3.1 Estimated model 21 3.2 Diagnosing the model problem 23 Page ECONOMETRICS KTEE318.1 GROUP 3.2.1 Check for zero mean value of disturbances (Assumption 5) 23 3.2.2 Check for multi-collinearity 24 3.2.3 Check for homoskedasticity (Assumption 6) 24 3.2.4 Check for the normality of disturbances (Assumption 7) 25 3.3 Hypotheses postulated 26 3.3.1 Statistical significance of individual coefficients 26 3.3.2 Overall significance of the multiple regression 27 3.3.3 Consistency of the regression results with the theories 28 3.3.4 Mechanism of the relationships between variables 28 3.4 Conclusion 29 SECTION 4: RECOMMENDATION 30 REFERENCES 31 APPENDIX 32 Page Document continues below Discover more from:tế lượng kinh kte309 Trường Đại học… 816 documents Go to course Tổng hợp đề CK KTL 17 đáp án - đề thi tổng… kinh tế lượng 100% (8) ĐỀ Kinh Te Luong TEST1 kinh tế lượng 100% (6) Ý NGHĨA BẢNG HỒI 18 QUY MƠ HÌNH BẰN… kinh tế lượng 100% (5) Tiểu luận Kinh tế 30 25 lượng - nhóm 11-đã… kinh tế lượng 100% (5) Tiểu-luận -Đạođức-kinh-doanh-… kinh tế lượng ECONOMETRICS ĐỀ ÔN THIGROUP KINH TẾ KTEE318.1 INTRODUCTION 100% (4) 42 LƯỢNG CUỐI KÌ kinh tế lượng 100% (4) Red meat is a type of meat that has a bright red color and changes to darker color after cooking such as beef, pork, lamb, etc Red meat is known as one of the most popular cooking ingredients in the World It contains many nutrients such as iron, zinc, vitamin B12 and especially high protein, providing energy for human activities Red meat can also be easily made into dishes, from the casual to the high-end and brings delicious taste to people Therefore, it becomes one of the most consumed cooking ingredients in the World In order to have an accurate view of the red meat consumption demand in all countries in the world, we have conducted a research called “Factors affecting the demand for red meat in countries around the world in 2021” Our research objective is to describe the factors affecting the demand for red meat and to show the relationship and influence level of each of these factors to the quantity demanded of red meat in countries The objects of our research are the demand for red meat in all countries in the world and main factors affecting this, which are: prices of beef, prices of chicken, income and the taste of these countries Our research scope includes parts: content scope, time scope and spatial scope The content scope is researching on factors affecting the demand for red meat in countries The time scope of the data in this research is in 2021 The spatial scope includes 123 countries This research consists of main sections In section 1, we present parts: the definition of all research objects mentioned in the research, the economic theories related to the research, other related researches and the research hypothesis In section 2, we mention parts: the methodology to derive the model and analyze the data, the theoretical model specification and describing the data In the last section, we show the estimation of the model, the diagnosis of the regression model, the hypothesis testing and recommendations Page ECONOMETRICS KTEE318.1 GROUP SECTION 1: LITERATURE REVIEW 1.1 Definition and Theory of Demand 1.1.1 Demand According to Robert S Pindyck & Naniel L Rubinfeld (1999), “The demand for a good or service is the quantity of that good or service that consumers are willing to buy in proportion to different prices over a specified period of time” 1.1.1.1 Quantity demanded: The quantity demanded of any good is the amount of the good that buyers are willing and able to purchase (N.G Mankiw, 67) 1.1.1.2 Market demand and individual demand The quantity demanded in a market is the sum of the quantity demanded by all the buyers at each price Thus, the market demand curve is found by adding horizontally the individual demand curve (N.G Mankiw, 69) Also according to Pindyck, “the market demand curve is the horizontal summation of the demands of each consumer” (R.S Pindyck, 122) The individual demand curve is a straight line, but the market demand curve can be kinked because the individual's willingness to buy prices may be different Based on Pindyck's analysis of individual and market demand (R.S Pindyck, 124), we can conclude that the factors that influence the demand of many buyers will influence the demand of the market 1.1.2 Factors affecting quantity demanded 1.1.2.1 The law of demand (The relationship between quantity demanded of a good and its price) “Other things being equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises” (N.G Mankiw, 67) Demand Curve: The demand curve shows how much of a good consumer is willing to buy as the price per unit changes (R.S Pindyck, 23) Page ECONOMETRICS KTEE318.1 GROUP The demand curve is placed on a coordinate axis, the vertical axis represents price and the horizontal axis represents quantity The demand curve is a downward sloping line that shows the inverse relationship between price and quantity In the law of demand, to simplify things, it is often assumed that factors such as consumer income, prices of related goods, consumer preferences, are constant factors However, in reality, these factors not always stand still, they change and affect the demand for a good In the following we examine the relationship between other factors and the demand for a good 1.1.2.2 Income of consumers According to N.G Mankiw theory, if a person's income decreases, they will be forced to spend less money on most goods, so their ability to buy is lower and that is the reason why their demand for goods reduces Similarly, if their income increases, their demand for goods also increases So, we say that the relationship between income and demand for goods is positive However, all quantities of goods and income not have a positive relationship If an increase in income leads to an increase in demand for a good, the good is normal good But, if an increase in income leads to an increase in demand for a good, the goods are inferior goods Attitude toward any goods depends on the income of the buyer, not on the quality of the goods Page