Share of Consumption by Sector and Income, Developing Countries, 2010

Share of Consumption by Sector and Income, Developing Countries, 2010

Source: The World Bank.

As the income level increases, so does the diversity of consumption. Consumption patterns in developing economies reveal that while food is the most important expense for lower-income levels, its share drops significantly as income levels increase. At higher income levels, transportation becomes the second most important expense, closely behind food. An important factor in the growing share of transport expense at higher income levels is that higher incomes are associated with formal and regular employment forms where mobility for commuting is important. It is also more likely that higher income levels are associated with automobile ownership.