Assumptions about the role of economic growth in the development of consumer behavior in romanian economy

• Author: Cristina Teodora Balaceanu - Cosmin Stoica
• Position: Associated Professor, Ph.D., The Faculty of International Business and Economics, ?Dimitrie Cantemir' Christian University, Bucharest - Lecturer, Ph.D., The Faculty of Finance, ?Dimitrie Cantemir' Christian University, Bucharest
• Pages: 237-242

Cristina Teodora Balaceanu, Cosmin Stoica

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LESIJ NO. XVIII, VOL. 1/2011

ASSUMPTIONS ABOUT THE ROLE OF ECONOMIC GROWTH

IN THE DEVELOPMENT OF CONSUMER BEHAVIOR IN ROMANIAN

ECONOMY

Cristina Teodora B;L;CEANU*

Cosmin STOICA**

Abstract

This paper aims to identify valences of Romanian consumer profiles and the main

influencing factors of income, especially income of labor. Also, we try to establish causal links

between economic growth, income and investment on the one hand, and consumption support, on

the other hand.

Keywords: consumption, disposable income, economic growth, labor productivity

Introduction

The increase of the income level depends on the economic growth. This indicator blocks

the cumulative manifestation of goods competitiveness on the market, endowment with natural

resources, exploration of the productive potential, labour force incentives, the balance degree of

import and export, unions’ force of negotiation, weight of social policy versus other structural

policies, access to the sources of finances already existent on the monetary- financial market, the

degree of market liberalization.

The most important aspect of consumer’s theory may be linked to the impulses of economic

policies sent through the channels of prices and exchange rate because the consumer’s motivation

and his behaviour changes once with the modification of price behaviour, the consumer being a

active player on the market of goods and services. At the same time, the changes in social policies

that appeared in time, stress the trend to purchase goods or, on the contrary, the consumer being

one of the budgetary transfer beneficiaries which leads to a surplus of monetary mass that covers

the demand of economic goods.

Therefore, a desirable consumer is the one with an increasing purchase power in the context

of economy competitiveness. The impulses of economic and social policy influence consumer’s

behaviour to adjust the demand of goods, consumer’s psychology and the motivation of his

purchase being strongly influenced by the market itself.

The structural change in wholly demand and the decline of the standards of living for most

of the Romanian population are problems of great political and social sensitivity Romania’s

transition to a market economy induced deep and contradictory changes to the standard of living.

On the one hand, a diversification of the sources of income took place. In 1990 a law which

permits accumulation has been in place, supplementary income has been generated from

occasional activities, and substantial opportunities to gain income have arisen from business. On

the other, the dramatic fall in production, as well as the rapid changes in income levels, structure

and distribution, has led to an explosion of poverty in entire Romania economy.

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*Associated Professor, Ph.D., The Faculty of International Business and Economics, „Dimitrie Cantemir” Christian

University, Bucharest (e-mail: movitea@yahoo.com).

**Lecturer, Ph.D., The Faculty of Finance, „Dimitrie Cantemir” Christian University, Bucharest (e-mail:

cosminstoica23@yahoo.com).