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Abstract This study is to examine the effects of income and sociodemograhic factors on the household expenditure of western fast food in China The data will be from urban household surveys conducted by the State Statistical Bureau of the Peoples Republic of China Ordinary Least Square OLS is adopted in the regression estimation of the model Dec 2003 Table of Content 1Introduction 2Research Scope and Objective 3Literature Review 4Theoretical and empirical model 5Data 6Conclusion 7Reference 1INTRODUCTION Until 1980s Chinas food sector and food away from home FAFH consumption have relatively little value added Most Chinese prepared meals at home with grain raw vegetables and meat produced at home or purchased from state-run food stores or directly from farmers As Chinas rapid income growth in the last 20 years due to the reforms Chinese consumers are eating more meals in restaurants caf and dining halls in the last two decades As a result the share of consumer expenditures for food away from home FAFH has been increasing rapidly in urban China The FAFH share of total food expenditures has steadily increased from 503 in 1992 to 147 at 2000 In 2000 per capita annual FAFH expenditures reached 288 yuan with the total FAFH expenditure 132 billion yuan in urban China The FAFH expenditure growth in China is expected to continue because of the rising middle class and rapid urbanization and also due to its relatively low FAFH share compared with the USA 365 in 1992 Canada 32 in 1992 and other developed countires Jensen and Yen 1996 After long periods negotiations China officially became the 143rd member of the World Trade Organization WTO in December 2001 Chinas accession of WTO has been a significant trade issue to the many large trade countries China are required to eliminate all non-tariff trade barriers and significant reduction of tariffs according to the
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