Does Investment in Advertising Boost Economic Performance? Firm-Level Evidence of Ecuadorian Manufacturing

Abstract: This paper examines how the firm´s advertising investments are related to different measures of economic and productivity performance during 2007 - 2017 in Ecuadorian manufacturing. Particularly, this study analyzes if firms that have advertising investments have better economic and produc...

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Autor principal:	Camino-Mogro,Segundo
Lenguaje:	Spanish / Castilian
Publicado:	Universidad Alberto Hurtado. Facultad de Economía y Negocios 2019
Materias:	Productivity advertising firm strategy intangible capital
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-27242019000400100
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spelling	oai:scielo:S0718-272420190004001002020-01-23Does Investment in Advertising Boost Economic Performance? Firm-Level Evidence of Ecuadorian ManufacturingCamino-Mogro,Segundo Productivity advertising firm strategy intangible capital Abstract: This paper examines how the firm´s advertising investments are related to different measures of economic and productivity performance during 2007 - 2017 in Ecuadorian manufacturing. Particularly, this study analyzes if firms that have advertising investments have better economic and productivity performance compare to non-advertising investment firms. In addition, this looks for evidence on how the different advertising strategies may affect productivity and gross revenue in both advertising and non-advertising firms. For this, this paper estimates the total factor productivity (TFP) at firm-level using a semi-parametric approach to reduce the simultaneous and endogeneity problems in the selection of inputs. The estimation results show that manufacturing firms which invest in advertising have an Advertising Premia on economic and productivity indicators, this premia is higher on economic outcomes. Also, the findings are that continuing advertising investment strategy firms have higher TFP, labor productivity, and gross revenue than exiting advertising investment firms, suggesting self-selection in the exit side of the market but not in the entry side of the market. Finally, the study finds that after firms entering to invest in advertising, firms experience an improvement on TFP, labor productivity, and gross revenue growth, which are in favor of learning by advertising hypothesis.info:eu-repo/semantics/openAccessUniversidad Alberto Hurtado. Facultad de Economía y NegociosJournal of technology management & innovation v.14 n.4 20192019-12-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-27242019000400100es10.4067/S0718-27242019000400100
institution	Scielo Chile
collection	Scielo Chile
language	Spanish / Castilian
topic	Productivity advertising firm strategy intangible capital
spellingShingle	Productivity advertising firm strategy intangible capital Camino-Mogro,Segundo Does Investment in Advertising Boost Economic Performance? Firm-Level Evidence of Ecuadorian Manufacturing
description	Abstract: This paper examines how the firm´s advertising investments are related to different measures of economic and productivity performance during 2007 - 2017 in Ecuadorian manufacturing. Particularly, this study analyzes if firms that have advertising investments have better economic and productivity performance compare to non-advertising investment firms. In addition, this looks for evidence on how the different advertising strategies may affect productivity and gross revenue in both advertising and non-advertising firms. For this, this paper estimates the total factor productivity (TFP) at firm-level using a semi-parametric approach to reduce the simultaneous and endogeneity problems in the selection of inputs. The estimation results show that manufacturing firms which invest in advertising have an Advertising Premia on economic and productivity indicators, this premia is higher on economic outcomes. Also, the findings are that continuing advertising investment strategy firms have higher TFP, labor productivity, and gross revenue than exiting advertising investment firms, suggesting self-selection in the exit side of the market but not in the entry side of the market. Finally, the study finds that after firms entering to invest in advertising, firms experience an improvement on TFP, labor productivity, and gross revenue growth, which are in favor of learning by advertising hypothesis.
author	Camino-Mogro,Segundo
author_facet	Camino-Mogro,Segundo
author_sort	Camino-Mogro,Segundo
title	Does Investment in Advertising Boost Economic Performance? Firm-Level Evidence of Ecuadorian Manufacturing
title_short	Does Investment in Advertising Boost Economic Performance? Firm-Level Evidence of Ecuadorian Manufacturing
title_full	Does Investment in Advertising Boost Economic Performance? Firm-Level Evidence of Ecuadorian Manufacturing
title_fullStr	Does Investment in Advertising Boost Economic Performance? Firm-Level Evidence of Ecuadorian Manufacturing
title_full_unstemmed	Does Investment in Advertising Boost Economic Performance? Firm-Level Evidence of Ecuadorian Manufacturing
title_sort	does investment in advertising boost economic performance? firm-level evidence of ecuadorian manufacturing
publisher	Universidad Alberto Hurtado. Facultad de Economía y Negocios
publishDate	2019
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-27242019000400100
work_keys_str_mv	AT caminomogrosegundo doesinvestmentinadvertisingboosteconomicperformancefirmlevelevidenceofecuadorianmanufacturing
_version_	1714203297145946112

Does Investment in Advertising Boost Economic Performance? Firm-Level Evidence of Ecuadorian Manufacturing

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