Economic Behavior of Households and Their Impact on the Development Model of the Country

Abstract

The article analyzes the motivation of the behavior of households as the most important factor that determines the choice of their strategy. Consequently, this choice has an impact both on the economy and global development. The results of the study determined that the world has two large economic models: European and Asian ones. The first one is a European model based on the paradigm of maximizing the well-being and the satisfaction of material goods, which is reflected in high consumption and low savings. The second one is an Asian model based on the understanding of the achievements of the welfare of households on the basis of prestige in the eyes of others through the prism of education, religiosity or moral principles of society, is inherent to a greater extent developing countries. As a result of this principle in Asian countries households have a high level of savings. However educated people tend to realize themselves in countries with the European model, which is more attractive for them. As a result of these contradictions, the world has created an imbalance, in which Asian countries with high saving rates are the suppliers of human resources and creditors for countries with the European model of development. System approach including comparative, intercountry, index and econometric ones is used in the research.