Licensed under Creative Common CHANGES OF PRIVATE CONSUMPTION PATTERNS IN ROMANIA AND THE EU: EVIDENCE BEFORE, DURING AND AFTER THE CRISIS

Raluca-Maria Bălă
2015 International Journal of Economics, Commerce and Management United Kingdom   unpublished
Private consumption as the main economic growth driver of countries is one of the main GDP components being also analyzed from the perspective of EU regions' convergence. It is thus important to study the consumption patterns of EU countries in order to reveal possible changing trends of households expenditure that directly influence the economic welfare of citizens at different periods in time. The purpose of the study is to analyze Romania's place between the EU countries regarding
more » ... patterns and how its position has evolved before, during and after the economic and financial crisis. In this regard the hierarchical clustering method was employed by using data for household final consumption expenditure and shares of consumption expenditure as defined by COICOP for the years 2008, 2009 and 2013. The results revealed an increasing divergence over time between EU members regarding most of the consumption categories and a persisting consumption pattern determined by high shares of expenditure on housing, food and transport mostly in southeastern countries.
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