Alevtyna Kudinova

PhD, Assoc. Prof.

Department of Political Economy

Vadim Getman Kyiv National Economic University

Modern transformation

of relations between production and consumption

Kyiv, Ukraine

E-mail: kudinovaalevtina@mail.ru

Denys Verba

PhD, Assoc. Prof.

Department of Political Economy

Vadim Getman Kyiv National Economic University

Kyiv, Ukraine

E-mail: forsend_20_01_14@ukr.net

ABSTRACT. 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.

Received: January, 2014

1st Revision: April, 2014

Accepted: May, 2014

DOI:10.14254/2071-789X.2014/7-2/4

JEL Classification: D11, D12, Е03

Keywords: consumption, human development, human capital accumulation, labor productivity.