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An Analysis of Reciprocal Influence between Advertising Expenditures and Gross Domestic Product

Author

Listed:
  • Zeynep Bayazit

    (Department of Business Administration, Istanbul Commerce University, Istanbul, Turkey)

  • Elif Guneren Genc

    (Department of Banking and Finance, Istanbul Commerce University, Istanbul, Turkey)

Abstract

In today's interconnected global economy, advertising plays a crucial role. Advertising, as the most effective marketing communication tool, generates informative value, consumer demand, company visibility, awareness to public, clear market positioning and economic vitality. According to most literature, a company which doesn't neglect marketing obligations and specifically advertising, tends to protect and gain market share and creates a positive brand image and reputation. The present study has explored the relationship between Gross Domestic Product (GDP) and Advertising expenditures (ADspend) according to the development levels of countries. This relation has inspected with using Panel Granger Causality Test, which reformed by Dumitrescu ve Hurin (2012). After that, the study has focused on establishing whether there is a cointegration relationship between GDP and Advertising Expenditures in the selected groups of countries with different types of development levels.

Suggested Citation

  • Zeynep Bayazit & Elif Guneren Genc, 2019. "An Analysis of Reciprocal Influence between Advertising Expenditures and Gross Domestic Product," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 41-47.
    • Handle: RePEc:eco:journ1:2019-02-5
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Advertising; Advertising Expenditures; Panel data models;
    All these keywords.

    JEL classification:

    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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