Prague Economic Papers 2024, 33(5):617-644

Consumption Expenditures on Food, Non-food Products and Services in Romania

Andrei Tudorel ORCID..., Bourbonnais Régis ORCID..., Mirică Andreea ORCID...
Andrei Tudorel, Mirică Andreea: Faculty of Economic Cybernetics, Statistics and Informatics, Bucharest University of Economic Studies, Bucharest, Romania
Bourbonnais Régis: Laboratoire Economie Dauphine, Université Paris Dauphine, Paris, France

This paper aims to assess the relationship between income and consumption expenditures of households in Romania between 1997 and 2022. The chosen econometric methods are the Augmented Dickey-Fuller and Phillip-Perron unit root tests, Granger causality tests and the Johansen-Juselius test. Our study highlights the fact that together with the increase in the monetary income, there was a considerable reduction in the income in kind that ensured the coverage of the consumption needs at the household level. Additionally, the increase in the population's monetary income is essential for reducing the share of expenses on the consumption of food products and increasing the consumption of non-food products and services.

Keywords: monetary income, income in kind, consumption, expenditures
JEL classification: A10, A13, Q11, Q18

Received: April 22, 2024; Revised: July 17, 2024; Accepted: August 8, 2024; Published: October 31, 2024  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Tudorel, A., Régis, B., & Andreea, M. (2024). Consumption Expenditures on Food, Non-food Products and Services in Romania. Prague Economic Papers, 33(5), 617-644
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Ahn, B-I. (2019). Investigation of Asymmetric Impulse Responses between Average Consumption Propensity and Average Food Consumption Propensity of Household in Korea. Agricultural Economics, 65(9), 415-424. https://doi.org/10.17221/287/2018-agricecon Go to original source...
    2. Alexandri, C. (2014). The Role of Small Farms in Romanian Rural Areas. Agricultural Economics and Rural Development, 11(1), 3-14.
    3. Algieri, B., Kornher, L., von Braun, J. (2024). The Changing Drivers of Food Inflation-Macroeconomics, Inflation, and War. ZEF-Discussion Papers on Development Policy No. 339 Go to original source...
    4. Almeida, V., Barrios, S., Christl, M., De Poli, S., Tumino, A., Van der Wielen, W. (2021). The Impact of COVID-19 on Households Income in the EU. The Journal of Economic Inequality, 19(3), 413-431. https://doi.org/10.1007/s10888-021-09485-8 Go to original source...
    5. Andrei, T., Oancea, B., Mirică, A. (2022a). Agriculture Export Variety and the Short and Long Run Impact on Agriculture Export. Agricultural Economics, 68(4), 137-145. https://doi.org/10.17221/37/2022-agricecon Go to original source...
    6. Andrei, T., Oancea, B., Mirică, A., Anghel, L. C. (2022b). The Competitive Advantage of Foreign Trade with Agri-food Products. Romanian Journal of Economic Forecasting, 25(2), 54-64.
    7. Andrei, T., Oancea, B., Profiroiu, M. (2011). An Analysis of the Romanian Agriculture Using Quantitative Methods. Agricultural Economics, 57(2), 85-92. https://doi.org/10.17221/2609-agricecon Go to original source...
    8. Batrancea, L. M., Nichita, A., Balci, M. A., Akgüller, Ö. (2023). Empirical Investigation on How Wellbeing-related Infrastructure Shapes Economic Growth: Evidence from the European Union Regions. Plos one, 18(4), e0283277. https://doi.org/10.1371/journal.pone.0283277 Go to original source...
    9. Caporale, G. M., Sova, A. D., Sova, R. (2024). The COVID-19 Pandemic and European Trade Patterns: A Sectoral Analysis. International Journal of Finance & Economics, 1-21. https://doi.org/10.1002/ijfe.2943 Go to original source...
    10. Cirera, X., Masset, E. (2010). Income Distribution Trends and Future Food Femand. Philosophical Transactions of the Royal Society, B, 365, 2821-2834. https://doi.org/10.1098/rstb.2010.0164 Go to original source...
    11. Craciun, M. (2013). Material Culture and Authenticity: Fake Branded Fashion in Europe. London: Routledge. ISBN 9780857854513
    12. Crăciun, M. (2015). Bobbles and Values: An Ethnography of De-bobbling Garments in Postsocialist Urban Romania. Journal of Material Culture, 20(1), 3-20. https://doi.org/10.1177/1359183514564132 Go to original source...
    13. Dabija, D. C., Câmpian, V., Pop, A. R., Băbuț, R. (2022). Generating Loyalty towards Fast Fashion Stores: A Cross-generational Approach based on Store Attributes and socio-environmental Responsibility. Oeconomia Copernicana, 13(3), 891-934. https://doi.org/10.24136/oc.2022.026 Go to original source...
    14. Diaconu, M., Maxim, A. (2018). The Consumption Behavior After 2008-2009 Crisis. Evidence From Romania. Revista Economica, 70(3), 65-78.
    15. Diener, E., Suh, E. (1997). Measuring Quality of Life: Economic, Social, and Subjective Indicators. Social Indicators Research, 40, 189-216. https://doi.org/10.1023/A:1006859511756 Go to original source...
    16. Dorjnyambuu, B., Galambosné Tiszberger, M. (2024). The sources and Structure of Wage Inequality Changes in the Selected Central-Eastern European Countries. The Journal of Economic Inequality, 1-43. https://doi.org/10.1007/s10888-024-09621-0 Go to original source...
    17. Dumitru, E. A., Micu, M. M., Sterie, C. M. (2023). The Key to the Development of Agricultural Cooperatives in Romania from the Perspective of Those Who Run Them. Outlook on Agriculture, 52(1), 89-100. https://doi.org/10.1177/00307270221138118 Go to original source...
    18. Dziechciarz, J., Dziechciarz-Duda, M. (2017). Non‑Metric Data in Household Durable Goods Analysis. Selected Aspects. Acta Universitatis Lodziensis. Folia Oeconomica, 4(330), 111-128. https://doi.org/10.18778/0208-6018.330.08 Go to original source...
    19. European Central Bank (2023) Household Finance and Consumption Survey: Results from the 2021 wave.
    20. European Central Bank (2024). Romania. In-Depth Review 2024.
    21. Eurostat (2023). Household Budget Survey - Statistics on Consumption Expenditure.
    22. Feher, A., Iancu, T., Raicov, M., Banes, A. (2021). Food Consumption and Ways to Ensure Food Security in Romania, in Erokhin V., ed., Shifting Patterns of Agricultural Trade: The Protectionism Outbreak and Food Security. Singapore: Springer Nature Singapore Pte Ltd, pp. 305-333. Go to original source...
    23. Fuchs, V. (1967). Redefining Poverty and Redistributing Income. The Public Interest, 8, 88-95.
    24. Fukase, E., Martin, W. (2020). Economic Growth, Convergence, and World Food Demand and Supply. World Development, 132, 104954. https://doi.org/10.1016/j.worlddev.2020.104954 Go to original source...
    25. Gabor, M. R. (2013). Endowment with Durable Goods as Welfare Indicator. Empirical Study regarding Post-communist Behavior of Romanian Consumers. Engineering Economics, 24(3), 244-253. https://doi.org/10.5755/j01.ee.24.3.2349 Go to original source...
    26. Gasior, K., Jara, H. X., Makovec, M. (2023). Assessing the Effectiveness of Social Protection Measures in Mitigating COVID-19-related Income Shocks in the European Union. Policy Research Working Papers. https://doi.org/10.1596/1813-9450-10546 Go to original source...
    27. Gerbens-Leenes, P. W., Nonhebel, S., Krol, M. S. (2010). Food Consumption Patterns and Economic Growth. Increasing Affluence and the Use of Natural Resources. Appetite, 55(3), 597-608. https://doi.org/10.1016/j.appet.2010.09.013 Go to original source...
    28. Gherghina, E. M. (2022). Wage Rigidity and Labour Market Changes in the Context of the Pandemic - The Case of Romania. Proceedings of the International Conference on Business Excellence, 16(1), 894-905. https://doi.org/10.2478/picbe-2022-0084 Go to original source...
    29. Godfray, H. C. (2011). Food for Thought. Proceedings of the National Academy of Sciences, 108(50), 19845-19846. Go to original source...
    30. Government of Romania (2020). National Strategy of Vaccination against COVID-19 in Romania, 2020. Bucharest: Romanian Government
    31. Granger, C.W.J, Jin-Lung Lin (1995). Causality in the Long Run. Econometric Theory, 11(3), 530-536. Go to original source...
    32. Heathfield, D., Wibe, S. (1987). An Introduction to Cost and Production Functions. London: Red Globe Press London. ISBN-13 978-0333416075. Go to original source...
    33. Heemskerk, F., Voinea, L., Cojocaru, A. (2018). Busting the Myth: The Impact of Increasing the Minimum Wage: The Experience of Romania. World Bank Policy Research Working Paper No. 8632. Go to original source...
    34. Hrisanta, M. M., Cristian, O. M., Ileana, V., Claudiu, C. S. (2021). The Impact of the Early Stages of COVID Pandemic Lockdown on Romania's Consumers' Behavior, in Dima A.L., ed., Economic Recovery After COVID-19: 3rd International Conference on Economics and Social Sciences, ICESS 2020, Bucharest, Romania. Amstrdam: Springer International Publishing, pp. 299-319. Go to original source...
    35. Hymans, S. H., Shapiro, H. T. (1976). The Allocation of Household Income to Food Consumption. Journal of Econometrics, 4(2), 167-188. https://doi.org/10.1016/0304-4076(76)90011-7 Go to original source...
    36. Istudor, N., Ion, R. A., Sponte, M., Petrescu, I. E. (2014). Food Security in Romania - A Modern Approach for Developing Sustainable Agriculture. Sustainability, 6(12), 8796-8807. https://doi.org/10.3390/su6128796 Go to original source...
    37. Ivanova, L., Dimitrov, P., Ovcharova, D., Dellava, J., Hoffman, D. J. (2006). Economic Transition and Household Food Consumption: A Study of Bulgaria from 1985 to 2002. Economics & Human Biology, 4(3), 383-397. https://doi.org/10.1016/j.ehb.2006.08.001 Go to original source...
    38. Jappelli, T., Pistaferri, L. (2010). The Consumption Response to Income Changes. Annual Revue of Economic, 2(1), 479-506. https://doi.org/10.1146/annurev.economics.050708.142933 Go to original source...
    39. Jovanovic, M. (2016). Empirical Analysis of Income Changes Impact on Food Consumption Expenditure. Agriculture & Forestry, 62(3), 49-56. https://doi.org/10.17707/AgricultForest.62.3.04 Go to original source...
    40. Kubicová, L., Zdenka K., Natália T., Peter B. (2019). Consumption of Food in Relation to Income and Saturation Limit of Slovak Households. Agricultural Economics-Cech, 65(12), 560-568. https://doi.org/10.17221/94/2019-agricecon Go to original source...
    41. Lange, D. (1989). Economic Development and Agricultural Export Pattern: An Empirical Cross-country Analysis. European Review of Agricultural Economics, 16(2), 187-202. https://doi.org/10.1093/erae/16.2.187 Go to original source...
    42. Lazar, D., Litan, C. M. (2023). Inequality, Growth, and Structural Transformation: New Evidence from a Post-communist Economy. Comparative Economic Studies, 1-25. https://doi.org/10.1057/s41294-023-00214-w Go to original source...
    43. Lee, J., Shigetomi, Y., & Kanemoto, K. (2023). Drivers of Household Carbon Footprints across EU Regions, from 2010 to 2015. Environmental Research Letters, 18(4), 044043. https://doi.org/10.1088/1748-9326/acc95e Go to original source...
    44. Lloyd, T., McCorriston, S., & Morgan, W. (2015). Food Inflation in the EU: Contrasting Experience and Recent Insights, in McCorriston S., ed., Food Price Dynamics and Price Adjustment in the EU. Oxford, UK: Oxford University Press, pp. 20-50. Go to original source...
    45. Milin, I. A., Busan, G., Ecobici, N., Rehman, A. (2023). Economic Growth Drivers in Romania: Evidence from a NARDL Analysis. Sustainability, 15(7), 5916. https://doi.org/10.3390/su15075916 Go to original source...
    46. Militaru, E., Popescu, M. E., Cristescu, A., Vasilescu, M. D. (2019). Assessing Minimum Wage Policy Implications upon Income Inequalities. The Case of Romania. Sustainability, 11(9), 2542. https://doi.org/10.3390/su11092542 Go to original source...
    47. Mindrican, I. M., Matei, E. F. (2023). The Impact of the Covid-19 Crisis on the Labour Market. Implications Of Employment Policy. Romanian Statistical Review, 1, 103-124.
    48. Molnar, M. (2010). Income Distribution in Romania; Technical Report of the Institute of National Economy of the Romanian Academy. Bucharest: The Institute of National Economy of the Romanian Academy.
    49. Nagyová L., Holienčinová M., Koąičiarová I., Holota T. (2016). Corporate Social Responsibility in Food Manu­facturing Companies - Environmental Dimensions. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 3, 1037-1043. https://doi.org/10.11118/actaun201664031037 Go to original source...
    50. National Institute of Statistics Romania (2023). Press Release 136/7.06.2023. Bucharest: National Institute of Statistics Romania
    51. National Institute of Statistics Romania (2024). Prices Statistical Bulletin of the no.3 2023.
    52. National Institute of Statistics Romania (2024). Household budget survey 2006-2022. [Unpublished raw data]. Bucharest: National Institute of Statistics Romania
    53. National Institute of Statistics Romania (2024). Integrated Household survey 1996-2006. [Unpublished raw data]. Bucharest: National Institute of Statistics Romania
    54. Neményi, Á. (2000). Rural Households in Romania-Structure, Income, Consumption.
    55. Oancea, B., Andrei, T., Pirjol, D. (2017). Income Inequality in Romania: The Exponential-Pareto Distribution. Physica A: Statistical Mechanics and its Applications, 469, 486-498. https://doi.org/10.1016/j.physa.2016.11.094 Go to original source...
    56. Patnaik, U. (2015). The Origins and Continuation of First World Import Dependence on Developing Countries for Agricultural Products. Agrarian South: Journal of Political Economy, 4(1), 1-21. https://doi.org/10.1177/2277976015574800 Go to original source...
    57. Paştiu, C. A., Maican, S. Ş., Dobra, I. B., Muntean, A. C., Haţegan, C. (2024). Food Insecurity among Consumers from Rural Areas in Romania. Frontiers in Nutrition, 10, 1345729. https://doi.org/10.3389/fnut.2023.1345729 Go to original source...
    58. Peersman, G. (2018). International Food Commodity Prices and Missing (Dis)inflation in the Euro Area. National Bank of Belgium Working Paper, No. 350. Go to original source...
    59. Petcu, I. R. (2022). Decomposing Income Inequality by Education in Romania. Romanian Statistical Review, 4, 81-92.
    60. Pop, R. A., Hlédik, E., Dabija, D. C. (2023). Predicting Consumers' Purchase Intention through Fast Fashion Mobile apps: The Mediating Role of Attitude and the Moderating Role of COVID-19. Technological Forecasting and Social Change, 186, 122111. https://doi.org/10.1016/j.techfore.2022.122111 Go to original source...
    61. Popescu, A., Dinu, T.A., Stoian, E. (2019). Changes, Trends and Relationships between Average Income and Consumption Expenditures per Household in Romania in the Period 2007-2017. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development, 19(2), 363-374.
    62. Pesaran, M.H., Shin, Y. Smith, R.J. (2000). Structural Analysis of Vector Error Correction Models with Exogenous I(1) Variables. Journal of Econometrics, 97, 293-343. Go to original source...
    63. Posedaru, B. Ș., Bologa, R., Toma, A., Pantelimon, F. V. (2022). The Influence of COVID-19 Pandemic on Online Retail Prices. Economic Computation & Economic Cybernetics Studies & Research, 56(1), 289-304. https://doi.org/10.24818/18423264/56.1.22.18 Go to original source...
    64. Prelipcean, G., Boscoianu, M. (2012). Aspects Regarding the Impact of the "Rabla" Program and the "Casa Verde" Program on the Ecological Consumption in Romania. Amfiteatru Economic, 14(31), 25-37.
    65. Rabbi, M. F., Ben Hassen, T., El Bilali, H., Raheem, D., Raposo, A. (2023). Food Security Challenges in Europe in the Context of the Prolonged Russian-Ukrainian conflict. Sustainability, 15(6), 4745. https://doi.org/10.3390/su15064745 Go to original source...
    66. Rotariu, T., Popescu, L. (1999). Poverty in Romania, in Yogaesh A., ed., Poverty in transition and transition in poverty: recent developments in Hungary, Bulgaria, Romania, Georgia, Russia, Mongolia. New York: Berghahn Books, pp. 102-129 Go to original source...
    67. Roux, C., Le Couedic, P., Durand-Gasselin, S., Luquet, F. M. (2000). Consumption Patterns and Food Attitudes of a Sample of 657 Low-income People in France. Food Policy, 25(1), 91-103. https://doi.org/10.1016/s0306-9192(99)00066-4 Go to original source...
    68. Scutaru, C., Saman, C., Pauna, B. (2015). The Dynamics of Household Consumption in Romania During Economic Crisis. Procedia Economics and Finance, 22, 820-827. https://doi.org/10.1016/S2212-5671(15)00316-0 Go to original source...
    69. Seale, J., Anita, R., Jason, B. (2003). International Evidence on Food Consumption Patterns. Washington: United States Department of Agriculture.
    70. Simionescu, M. (2022). The Insertion of Economic Cybernetics Students on the Romanian labor Market in the Context of Digital Economy and COVID-19 Pandemic. Mathematics, 10(2), 222. https://doi.org/10.3390/math10020222 Go to original source...
    71. Smutka, L., Svatoą, M., Tomąík, K., Sergienko, O. I. (2016). Foreign Trade in Agricultural Products in the Czech Republic. Agricultural Economics/Zemědělská Ekonomika, 62(1), 9-25. https://doi.org/10.17221/18/2015-AGRICECON Go to original source...
    72. Stănculescu, M. S., Pop, L. (2017). The Transition Process and Changes in Income, Income Inequality and Poverty: The Case of Romania, in Stanculescu, M.S, Stanovnik, T., ed., Activity, Incomes and Social Welfare. London: Routledge, pp. 177-230. Go to original source...
    73. Tschirley, D. L.,Weber, M. T. (1994): Food Security Strategies under Extremely Adverse Conditions: The Determinants of Household Income and Consumption in Rural Mozambique. World Development, 22(2), 159-173. https://doi.org/10.1016/0305-750x(94)90067-1 Go to original source...
    74. Vasilescu, C. (2022). Revaluation of Working Conditions and Wages for Essential Workers. Country study on Romania (Annex 3.5.).
    75. Wooldridge, J. M. (2012). Introductory Econometrics: A Modern Approach 5rd ed. Mason: Cengage Learning. ISBN-13 978-1-11153104-1.

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content