Acta academica karviniensia 2014, 14(1):166-175 | DOI: 10.25142/aak.2014.017

ASSESSMENT OF CONVERGENCE OF THE CZECH REPUBLIC AND WESTERN EUROPE WITH ASSISTANCE OF STRUCTURE OF CONSUMER EXPENDITURE

Ladislav Stejskal
Mendelova univerzita, Provozně ekonomická fakulta, Zemědělská 1, 613 00 Brno, Email:ladislav.stejskal@mendelu.cz

The paper presents a comparative analysis of living situation in the Czech Republic and in Western Europe at the beginning and at the end of the decade 2000 - 2010. The primary thesis was the convergence of living situation during the analyzed period. The evaluation criteria were consumption expenditures of households. The aim was to obtain the base for related economic analyses and background for creating business or marketing strategies. The method used was cluster analysis supplemented by basic descriptive statistics. Classification system for evaluation expenditure structures was the standard "Classification of Individual Consumption According to Purpose" designed by the UN Statistical Division. Comparability of absolute values of expenditures was ensured by conversions to the Purchasing Power Standard. As a result the convergence of absolute amounts and relative structures of consumer expenditures was identified. As to structures of consumption expenditures the Czech Republic stood out the set of analyzed countries. This was probably due to non-economic factors dealt by the theory of cultural affinity zones. The conclusion is confirmation of the thesis on living situation convergence, i. e. improving living conditions of Czech households in relation to Western European households between years 2000 and 2010. The evaluation, however, applies only to the sum of consumption expenditures. In terms of selected expenditure groups the situation of Czech households got worse during the examined period. According to the results the real improvement of living conditions also lagged behind the growth of the market value of final domestic product, while GDP is often being presented (especially by media) as an indicator of life situation.

Keywords: cluster analysis, consumer expenditures, economic convergence, EU 15, living situation
JEL classification: D10, D12, D30, D31, D61, H31, O15, R11, R20

Received: October 3, 2012; Accepted: September 11, 2013; Published: March 30, 2014  Show citation

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Stejskal L. ASSESSMENT OF CONVERGENCE OF THE CZECH REPUBLIC AND WESTERN EUROPE WITH ASSISTANCE OF STRUCTURE OF CONSUMER EXPENDITURE. Acta academica karviniensia. 2014;14(1):166-175. doi: 10.25142/aak.2014.017.
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