IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i11p6470-d570175.html

Finances and National Economy: Frugal Economy as a Forced Approach of the COVID Pandemic

Author

Listed:
  • Otilia Manta

    (Financial and Monetary Research Center “Victor Slavescu”, Romanian Academy, 050711 Bucharest, Romania
    Department of Research, Romanian-American University, 012101 Bucharest, Romania)

  • Eglantina Hysa

    (Department of Economics, Epoka University, 1032 Tirana, Albania)

  • Alba Kruja

    (Department of Business Administration, Epoka University, 1032 Tirana, Albania)

Abstract

This paper aims to create an image both in terms of description and in terms of graphical representation, with multiannual coverage (2007–2019), the evolution of the financial indicators of the population, and their impact on the national economy. The main objective is to establish the basic pillars of the concentrated table of population financial indicators in terms of the values of absolute primary indicators, on the basis of which the values of the three relevant relative indicators that characterize the financial situation of the population were calculated directly for the potential and performance of the national economy, especially in the current context of the COVID-19 pandemic. The research methodology was based on a series of numerical data from public databases, tools, and appropriate research methods based on the calculation of primary indicators, and indicators derived by appropriate calculation formulas, for the identification of factors influencing the financial status of the population at and a comparative analysis of the financial assets and liabilities of households in Romania and the European Union. The results of the paper are given by the evolution of primary indicators on the characterization of the financial situation of the population in 2007–2019, especially for the active population, and are directly influenced by the quality of eligible employment and employed adults, as well as the sustainability of the national economy. The personal contribution of the research team consists of the mathematical correlations given by the population finances for the economy of a state, which are extremely relevant, especially since, depending on their positive or negative levels, systemic financial and social imbalances are created with direct impact on the sustainability of the national economy. Thus, we want to determine these financial indicators relevant to the economy. Additionally, due to the COVID-19 pandemic, the related issues to the population finances have aggravated and as such, there is a need for structural changes and adoptions. Finally, as an immediate and less costly solution, this study comes up with the suggestion of shifting the national economy toward frugality, therefore, significantly supporting sustainable development.

Suggested Citation

  • Otilia Manta & Eglantina Hysa & Alba Kruja, 2021. "Finances and National Economy: Frugal Economy as a Forced Approach of the COVID Pandemic," Sustainability, MDPI, vol. 13(11), pages 1-25, June.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:11:p:6470-:d:570175
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/11/6470/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/11/6470/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peña, Werner, 2020. "Population Aging and Public Finances: Evidence from El Salvador," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    2. Batrancea Larissa & Rathnaswamy Malar Maran & Batrancea Ioan & Nichita Anca & Rus Mircea-Iosif & Tulai Horia & Fatacean Gheorghe & Masca Ema Speranta & Morar Ioan Dan, 2020. "Adjusted Net Savings of CEE and Baltic Nations in the Context of Sustainable Economic Growth: A Panel Data Analysis," JRFM, MDPI, vol. 13(10), pages 1-17, October.
    3. Peter Voigt & Pietro Moncada-Paternò-Castello, 2012. "Can Fast Growing R&D-Intensive SMEs Affect the Economic Structure of the EU Economy?: A Projection to the Year 2020," Eurasian Business Review, Eurasia Business and Economics Society, vol. 2(2), pages 96-128, Fall.
    4. Thomas Farole & Andrés Rodríguez‐Pose & Michael Storper, 2011. "Cohesion Policy in the European Union: Growth, Geography, Institutions," Journal of Common Market Studies, Wiley Blackwell, vol. 49(5), pages 1089-1111, September.
    5. Jagrič, Timotej & Brown, Christine & Boyce, Tammy & Jagrič, Vita, 2021. "The impact of the health-care sector on national economies in selected European countries," Health Policy, Elsevier, vol. 125(1), pages 90-97.
    6. Constantin Anghelache & Olivia Georgiana Nita & Alexandru Badiu, 2016. "Migrants remittances – an important and stable source of external funds, in the economic development of a country," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(12), pages 86-92, December.
    7. Batrancea Ioan & Rathnaswamy Malar Kumaran & Batrancea Larissa & Nichita Anca & Gaban Lucian & Fatacean Gheorghe & Tulai Horia & Bircea Ioan & Rus Mircea-Iosif, 2020. "A Panel Data Analysis on Sustainable Economic Growth in India, Brazil, and Romania," JRFM, MDPI, vol. 13(8), pages 1-19, August.
    8. Madalina-Gabriela ANGHEL & Constantin ANGHELACHE & Georgiana NITA, 2017. "Analysis Of The Influence International Trade On Economic Growth In The European Union," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(5), pages 170-184, May.
    9. Constantin ANGHELACHE & Marian SFETCU & Mugurel POPOVICI & Zoica DINCA (NICOLA), 2016. "General aspects regarding the concept of economic growth," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(10), pages 67-70, October.
    10. Eglantina Hysa & Alba Kruja & Naqeeb Ur Rehman & Rafael Laurenti, 2020. "Circular Economy Innovation and Environmental Sustainability Impact on Economic Growth: An Integrated Model for Sustainable Development," Sustainability, MDPI, vol. 12(12), pages 1-16, June.
    11. Peter Voigt & Pietro Moncada-Paternò-Castello, 2012. "Can Fast Growing R&D-Intensive Smes Affect the Economic Structure of the Eu Economy?: A Projection to the Year 2020," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 2(2), pages 96-128, December.
    12. d’Albis, Hippolyte & Boubtane, Ekrame & Coulibaly, Dramane, 2019. "Immigration and public finances in OECD countries," Journal of Economic Dynamics and Control, Elsevier, vol. 99(C), pages 116-151.
    13. Marc Fleurbaey, 2009. "Beyond GDP: The Quest for a Measure of Social Welfare," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 1029-1075, December.
    14. Hippolyte D'Albis & Ekrame Boubtane & Dramane Coulibaly, 2019. "Immigration and public finances in OECD countries," Post-Print hal-01992530, HAL.
    15. Constantin Anghelache & Madalina – Gabriela Anghel & Alina – Georgiana Solomon, 2017. "The Effect of Migration on Labor Resources," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(3), pages 6-13, July.
    16. Aisen, Ari & Veiga, Francisco José, 2013. "How does political instability affect economic growth?," European Journal of Political Economy, Elsevier, vol. 29(C), pages 151-167.
    17. Otilia Manta & Kostas Gouliamos & Jie Kong & Zhou Li & Nguyen Minh Ha & Rajendra Prasad Mohanty & Hongmei Yang & Ruihui Pu & Xiao-Guang Yue, 2020. "The Architecture of Financial Networks and Models of Financial Instruments According to the “Just Transition Mechanism” at the European Level," JRFM, MDPI, vol. 13(10), pages 1-24, October.
    18. Constantin ANGHELACHE & Madalina-Gabriela ANGHEL & Mirela PANAIT, 2017. "Main Developments and Perspectives of the European Union," Romanian Statistical Review, Romanian Statistical Review, vol. 65(2), pages 57-79, June.
    19. Hickey, Rónán & Lozej, Matija & Smyth, Diarmaid, 2020. "Financing government investment and its implications for public capital: A small open economy perspective," Economic Modelling, Elsevier, vol. 93(C), pages 620-641.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mirela Clementina Panait & Marian Catalin Voica & Eglantina Hysa & Alfonso Siano & Maria Palazzo, 2022. "The Bucharest Stock Exchange: A Starting Point in Structuring a Valuable CSR Index," JRFM, MDPI, vol. 15(2), pages 1-14, February.
    2. Alba Demneri KRUJA & Amelia BULLARI, 2024. "Factors critical to a successful ERP implementation: evidence from an emerging economy," Romanian Journal of Economics, Institute of National Economy, vol. 59(2(68)), pages 84-94, December.
    3. Victor Platon & Florin Marius Pavelescu & Marius Surugiu & Simona Frone & Raluca Mazilescu & Andreea Constantinescu & Florina Popa, 2023. "Influence of Eco-Innovation and Recycling on Raw Material Consumption; Econometric Approach in the Case of the European Union," Sustainability, MDPI, vol. 15(5), pages 1-18, February.
    4. Marian Catalin Voica & Mirela Panait & Eglantina Hysa & Arjona Cela & Otilia Manta, 2021. "Foreign Direct Investment and Trade—Between Complementarity and Substitution. Evidence from European Union Countries," JRFM, MDPI, vol. 14(11), pages 1-16, November.
    5. Valentina Ndou & Eglantina Hysa & Ylenia Maruccia, 2023. "A Methodological Framework for Developing a Smart-Tourism Destination in the Southeastern Adriatic–Ionian Area," Sustainability, MDPI, vol. 15(3), pages 1-30, January.
    6. Hossain, Mokter & Park, Sukyung & Shahid, Subhan, 2023. "Frugal innovation for sustainable rural development," Technological Forecasting and Social Change, Elsevier, vol. 193(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Constantin ANGHELACHE & Madalina-Gabriela ANGHEL & Maria MIREA, 2017. "Accumulated National Wealth – An Element Of Economic Development," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(10), pages 14-24, October.
    2. MANTA, Otilia Elena, 2022. "Financial, Economic, Digital And Environmental Inclusion In The Context Of Global Agreements," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 10(1), pages 251-263, October.
    3. Constantin ANGHELACHE & Madalina-Gabriela ANGHEL & Andreea–Ioana MARINESCU & Maria MIREA, 2017. "Analysis Of The European Union S Science And Technology Strategy," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(9), pages 17-30, September.
    4. Madalina-Gabriela Anghel & Constantin Anghelache & Daniel Dumitrescu & Doina Burea & Radu Stoica, 2018. "Analysis of the Effect of Accessing the Community Funds for Financing Investments on Romania's Economic Growth," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(2), pages 102-112, April.
    5. Jaime Oliver Huidobro & Alberto Antonioni & Francesca Lipari & Ignacio Tamarit, 2022. "Social capital as a network measure provides new insights on economic growth," PLOS ONE, Public Library of Science, vol. 17(8), pages 1-18, August.
    6. Ben Atta, Oussama & Chort, Isabelle & Senne, Jean Noël, 2022. "Immigration, integration, and the informal economy in OECD countries," GLO Discussion Paper Series 1197, Global Labor Organization (GLO).
    7. d'Agostino, Giorgio & Scarlato, Margherita, 2016. "Institutions, Innovation and Economic Growth in European Countries," MPRA Paper 72427, University Library of Munich, Germany.
    8. Getinet Haile & Ilina Srour & Marco Vivarelli, 2014. "Globalization and Technology Transfer in Ethiopia: Their Impact on Domestic Employment and Skills," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1498, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    9. John Sseruyange & Jeroen Klomp, 2021. "Natural Disasters and Economic Growth: The Mitigating Role of Microfinance Institutions," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    10. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," The World Bank Research Observer, World Bank, vol. 30(2), pages 277-305.
    11. Stefan Schiman, 2021. "Labor Supply Shocks and the Beveridge Curve: Empirical Evidence from EU Enlargement," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 40, pages 108-127, April.
    12. Chassamboulli, Andri & Fontaine, Idriss & Gálvez-Iniesta, Ismael & Gomes, Pedro, 2024. "Immigration and labour market flows," Labour Economics, Elsevier, vol. 86(C).
    13. Fahd A. Alturki & Emad Mahrous Awwad, 2021. "Sizing and Cost Minimization of Standalone Hybrid WT/PV/Biomass/Pump-Hydro Storage-Based Energy Systems," Energies, MDPI, vol. 14(2), pages 1-20, January.
    14. Pietro Moncada-Paternò-Castello & Nicola Grassano, 2022. "The EU vs US corporate R&D intensity gap: investigating key sectors and firms [A primer on innovation and growth]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(1), pages 19-38.
    15. Constantin ANGHELACHE & Madalina-Gabriela ANGHEL & Radu STOICA, 2017. "Quarterly Analysis Of Gross Domestic Product Evolution - Significance Of Growth Rate," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(6), pages 16-28, June.
    16. Muhammad Faisal Shehzad & Mainak Dan & Valerio Mariani & Seshadhri Srinivasan & Davide Liuzza & Carmine Mongiello & Roberto Saraceno & Luigi Glielmo, 2021. "A Heuristic Algorithm for Combined Heat and Power System Operation Management," Energies, MDPI, vol. 14(6), pages 1-22, March.
    17. Daniel Rauhut & Birgit Aigner-Walder & Rahel M. Schomaker, 2023. "Economic Theory and Migration," Springer Books, in: The Economics of Immigration Beyond the Cities, chapter 0, pages 21-50, Springer.
    18. Michael Clemens, 2021. "The Fiscal Effect of Immigration: Reducing Bias in Influential Estimates," CESifo Working Paper Series 9464, CESifo.
    19. Dramane Coulibaly & Blaise Gnimassoun, 2022. "Emigration and Capital Flows: Do Migrants’ Skills Matter?," Working Papers of BETA 2022-31, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    20. Ivan Savin & Maria Novitskaya, 2023. "Data-driven definitions of gazelle companies that rule out chance: application for Russia and Spain," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 507-542, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:11:p:6470-:d:570175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.