Abstract
The purpose of this paper is to appoint the causality between economic activity in the sector of distributive trade and the economic growth of 28 European Union nations. Specifically, it examines the impact of changes in turnover per employee in the distributive trade sector in EU member states on the tangible economic growth rate. The determination to adopt this approach stems from the fact that existing studies mainly explore indirect relationship between economic activities in distributive trade and economic development, with less focus on the direct impact of distributive trade on economic growth. The paper utilizes information for the period from 2008 to 2015. The research relies on multiple regression model, with the Hausman test its robustness. The results indicate that a hike in turnover per employee in the distributive trade sector by 10 euros per year in one EU member state increases its real economic growth rate by 0.15% in that same year. The significance of the made results is reflected in the fact that the survey takes into account the last economic crisis, and highlights negative effects of final consumption expenditure of general government % GDP on the tangible economic growth rate in EU member states.
Highlights
Due to intense market globalization and distributive trade internationalization, studies on interdependence between economic growth and distributive trade structure are gaining importance
The case with independent variable is opposite. This fact has been a further research challenge to demonstrate the importance of productivity in the distributive trade sector for economic growth in the countries analyzed
Distributive trade is an influential economic sector in the European Union nations. This is shown in numerous European Commission documents which, in late years, more and more focus on distributive trade sector, retail
Summary
Due to intense market globalization and distributive trade internationalization, studies on interdependence between economic growth and distributive trade structure are gaining importance. It should be added that economic theorists talk about interdependence between economic development and certain changes in economic construction In this context, in that respect are the so-called Clark-Fisher hypotheses (Lovreta, Radunović, & Petković, 1998) on the need to classify all economic sectors into the so-called primary, secondary, and tertiary. Numerous surveys corroborate the high level of correlation between distributive trade structure and the degree of economic development (Olsen & Granzin, 1990; Levy, Weitz, & Grewal, 2014) This correlation opens the issue of the impact of distributive trade on economic growth, as the most significant factor of economic evolution, being the research subject in this composition.
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