Abstract:
The paper purpose was to analyze the relationship between Romania's Gross Domestic Product (GDP) and final consumption (FC) using the regression model based on the empirical data provided by the National Institute of Statistics for the period 2007-2016. In the analyzed period, both GDP, final consumption and also final consumption of the population have increased by 77.71 %, 65.5 % and, respectively, by 52.4 %. In 2016, Romania's GDP accounted for Lei 428.9 Billion, final consumption for Lei 586.4 Billion, and final consumption of the population for Lei 433 Billion. The regression model, GDP = 1.4859 FC -92.246 proved that an increase by Lei 1 Billion of the final consumption will determine an increase of Lei 1.4859 Billion of GDP and R2= 99.65 attested that 99.05 % of the variation of GDP is caused by the variation of the final consumption. Also, the regression model GDP= 0.5377 FCP +45.373 showed that an increase by Lei 1 Billion of the population final consumption will determine a GDP growth of Lei 0.5377, and R2 confirmed that 98.85 % of the GDP variation is caused by the variation of the population final consumption. Between GDP/inhabitant and the final consumption of the population/inhabitant is also a positive and strong relationship as confirmed by the regression model: GDP/capita = 0.546 FCPH/capita + 1997.8. This means that a change of Lei 1 of the final consumption of the population/ inhabitant will determine a change of Lei 0.546 of GDP/capita. R square also had a high value reflecting that 99.22 % of the GDP/capita variation is determined by the variation of the final consumption of the population/capita. As a conclusion, final consumption, and especially final consumption of the population must be stimulated being the most important determinants of the economic growth. Also, all the other factors with a positive impact on GDP growth such as: export and gross fixed capital must be also developed.
