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

Domazet Anto, Sendić Rusmir and Alić Adi
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Alić Adi: Department of Marketing, School of Economics and Business, Sarajevo, Bosnia and Herzegovina

Business Systems Research, 2012, vol. 3, issue 1, 23-29

Abstract: 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: Globalization; Convergence; Household consumption expenditure; European Union; International marketing (search for similar items in EconPapers)
Date: 2012
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DOI: 10.2478/v10305-012-0003-3

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