Journal of African Economies Advance Access originally published online on May 2, 2008
Journal of African Economies 2008 17(5):661-687; doi:10.1093/jae/ejn006
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Qat Expenditures in Yemen and Djibouti: An Empirical Analysis
World Bank and Carnegie Endowment for International Peace, Washington DC, USA
* Corresponding author: Branko Milanovic, World Bank and Carnegie Endowment for International Peace, Washington DC, USA.
Using household surveys from Yemen and Djibouti, the paper analyses determinants of qat consumptions in two countries. The results confirm huge importance of qat in daily life: with between one-half (in Djibouti) and 70% (in Yemen) of all households reporting at least one user. But in Yemen, qat consumption is remarkably flat across income groups, age, and between rural and urban areas. Qat is a normal good and there is no indication that its use substitutes for food. In Djibouti, however, qat consumption increases with income, and appears to act as a substitute for food consumption. In both countries however there is a strong gender bias in the use: men are much more likely to use qat than women.
JEL classification: D12, I12
Views expressed are my own and should not be attributed to the World Bank or its affiliated organisations. The research was financed by World Bank Research Grant PO72208 and Yemen Qat Trust Fund 024353.