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
SUMMARY

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.

 
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Cristina Teodora Balaceanu, Cosmin Stoica
237
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).

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