Household final consumption - Rank positions in a sample of 55 countries (and 11 indicators)
Short substantive references to the "Household final consumption expenditure, etc.." and without wider elaboration article in its entirety
Macroeconomic category "Household final consumption expenditure, etc.." essentially (and in simplified terms) is part of GDP, which is (in one way or another) extracted from the real sector of the economy. It is clear that he does not spend the whole finally and promptly. The reasons are both economic and technical, and here we can not go into detailed explanation. There is important to highlight two other important implications: (1) This means that the gross domestic savings (accumulation) is not only the primary form of retained profits in the real economy (in microeconomic entities), but also (2) that extracted portion of GDP (the part that is not consumed promptly) outside the sector of the real economy, secondarily formed (included in) the gross domestic savings (accumulation). This opens up the possibility, moreover, necessity of known traditional function of time (term), space and special purpose transformation part of GDP extracted from the real sector of economy.
In the time before the financial liberalization and financial globalization (ie at the time was not yet discarded Bretton Woods arangement and it incorporated Keynesian stance: 'Let goods be homespun whenever it is reasonably and conveniently possible; and, above all, let finance be primarily national.'" ) - thus formed savings "returned" to the economy, through the domestic banking sector, primarily by financing of real domestic investment.
Later, after a financial revolution, and now too - not only in countries with highly developed and globalized financial systems, than in countries with underdeveloped financial systems and the domination of foreign banks in the domestic banking sector - domestic savings flows, formed outside of the real sector of the economy, often go completely different. It's here can not consider wider.
But at least it should be said that in countries with performances much like the Serbian economy, the dominant foreign banking entities (both objective and subjective reasons) that part of the gross domestic saving too little (if at all possible to talk about the relevant part) directed to fixed domestic investment and much more redirected to the household sector for financing final consumption, mostly foreign goods.
- Quote paper
- Professor Dr Stanko Radmilovic (Author), 2013, Household final consumption. Rank positions in a sample of 55 countries (and 11 indicators), Munich, GRIN Verlag, https://www.grin.com/document/267537