Modern Transformation of Relations between Production and Consumption

Title: Modern Transformation of Relations between Production and Consumption
Issue: Vol. 7, No 2, 2014
Published date: 20-05-2014 (print) / 20-05-2014 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Alevtyna Kudinova
Denys Verba
Keywords: consumption, human development, human capital accumulation, labor productivity
DOI: 10.14254/2071-789X.2014/7-2/4
Language: English
Pages: 34-46 (13)
JEL classification: D11, D12

In this paper we study the antecedents and consequences of modern transformation which happens with relations between production and consumption. A theoretical justification of the thesis about blurring relationship between growth of consumer’s opportunities and resource provision’s improvement for human capital accumulation is proposed. The reason for this phenomenon is called the predominance of one from two forms of consumption expansion. Specifically, the predominance of the growth of consumer goods diversity, in comparison with increase of their availability is in our opinion the reason for weakening the positive impact of consumption growth on the accumulation of human capital. An empirical confirmation of this thesis is revealed in the analysis of variance in connection between scale of individual consumption and labor productivity in the group of European countries, as well as the U.S. and Japan.