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Journal of African Economies Advance Access published online on May 2, 2008
Journal of African Economies, doi:10.1093/jae/ejn006
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© The author 2008. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org

Qat Expenditures in Yemen and Djibouti: An Empirical Analysis

Branko Milanovic1

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


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