Convergence analysis of household expenditures using the absolute β-convergence method

• Authors: Anto Domazet , Rusmir Sendić , Adi Alić

Abstracts

EN

Background: The paper examines the convergence of household expenditures, in terms of a possible usage of the standardized, rather than consumer-tailored marketing, mainly on a regional level. Objectives: The main goal of this research is to study the existence of consumption expenditure convergence in the EU-27 countries, in the period between 2000 and 2007. Methods/Approach: The analysis used the absolute β-convergence method, in order to investigate the existence of a negative correlation between the growth over time in the overall consumption expenditure in EU member-countries for each individual product and service category and the initial expenditure level. Results: According to the obtained results, in the period between 2000 and 2007, the EU-27 countries reached a high level of consumer expenditure convergence, which provides a basis for developing a regional concept of the standardized international marketing for these countries' markets. Conclusions: The results provide an empirical contribution to claims on consumer convergence in the countries included into economic integrations. Also, the obtained results can be used to create a basis for defining and applying the regional marketing concept for companies focusing on the EU-27 countries' market.

Keywords

EN

Globalization; Convergence; Household consumption expenditure; European Union; International marketing

• Publisher: Sciendo
• Journal: Business Systems Research Journal
• Year: 2012
• Volume: 3
• Issue: 1
• Pages: 23-29

Dates

published

2012-06-01

online

2012-09-17

Contributors

author

Anto Domazet

• Department of Marketing, School of Economics and Business, Sarajevo, Bosnia and Herzegovina

author

Rusmir Sendić

• Department of Marketing, School of Economics and Business, Sarajevo, Bosnia and Herzegovina

author

Adi Alić

• Department of Marketing, School of Economics and Business, Sarajevo, Bosnia and Herzegovina

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Identifiers

DOI

10.2478/v10305-012-0003-3