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

Authors

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

Keywords:

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

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.

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Downloads

Published

2012-06-30

Issue

Section

Research Articles