National economic performance and alcohol consumption : A study on the Baltic and Nordic countries

Abstract: Europe is known for being the continent, in which most alcohol is consumed. The amount consumed varies across the continent and is highest in the Nordic and Baltic countries. The tradition of how alcohol is consumed differs across Europe. Generally, the south of Europe consumes alcohol more frequently, but in smaller quantities. While in the north part of Europe larger quantities are consumed on fewer occasions, this is also referred to as binge drinking. However, this alone is not able to explain the variance in consumption patterns. The purpose of this study is to examine the effect of the selected national performance measurements on alcohol consumption. The average annual wage, unemployment rate and percentage of GDP spent on health expenditure were chosen based on previous research. The price-setting on alcohol was chosen as a representation of consumption restricting policies. A panel data regression is performed on eight countries from the period 2008 to 2017. The results show that there is a relationship between the dependent variable's health expenditure and price index and the independent variables. More specifically that health expenditure and price indexes have a negative relationship with alcohol consumption. Furthermore, in the last chapter future studies and policies are suggested.