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The determinants of advertising intensity in the Brazilian manufacturing industry: an econometric study


  • Marcelo Resende



The paper econometrically investigates the determinants of advertising intensity in the manufacturing industry of São Paulo, Brazil in 1996 taking as reference an extensive survey carried out by Fundação SEADE. The preliminary investigation indicated a substantial degree of endogeneity in structure and performance variables. The instrumental variables estimation also considered instruments referring to information technology and organizational practices and indicated relevant roles for industrial concentration, barriers to entry, profitability and prevalence of durable goods in explaining advertising intensity. The results lend some support to an informative role of advertising in the Brazilian case.

Suggested Citation

  • Marcelo Resende, 2006. "The determinants of advertising intensity in the Brazilian manufacturing industry: an econometric study," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 16(3), pages 407-422, September.
  • Handle: RePEc:nov:artigo:v:16:y:2006:i:3:p:407-422

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    advertising; structure-conduct-performance;

    JEL classification:

    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General


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