Economics and Politics of Advertising: Evidence from the Enlarging European Union

European Journal of Marketing, Vol. 41, pp. 3-4, 2007

19 Pages Posted: 1 May 2007

See all articles by Nir Kshetri

Nir Kshetri

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics

Nicholas Williamson

University of North Carolina at Greensboro

Andreea Schiopu

University of North Carolina (UNC) at Greensboro

Abstract

There is arguably an optimum amount of advertising that an economy can absorb. A company's ad spending in an economy is a function of a host of economic and geopolitical factors. Regional economic integrations bring a significant transformation in these factors, which in turn influence advertising. We employed random effect time series cross section (TSCS) models and cross sectional regressions to investigate the impacts of economic and political factors on advertising industry in the enlarging EU. We found that marketers' ad spending decisions in these economies are driven by consumers' income level and FDI inflow. Civil liberty variable, on the other hand, was found to moderate the relationship between income and ad spending.

Keywords: Advertising, enlarging EU, civil liberty, market economy

JEL Classification: C12, M31

Suggested Citation

Kshetri, Nir and Williamson, Nicholas and Schiopu, Andreea, Economics and Politics of Advertising: Evidence from the Enlarging European Union. European Journal of Marketing, Vol. 41, pp. 3-4, 2007. Available at SSRN: https://ssrn.com/abstract=983529

Nir Kshetri (Contact Author)

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics ( email )

401 Bryan Building
Greensboro, NC 27402-6179
United States
336-334-4530 (Phone)
336-334-4141 (Fax)

Nicholas Williamson

University of North Carolina at Greensboro ( email )

P.O.Box 26170
Greensboro, NC 27412
United States

Andreea Schiopu

University of North Carolina (UNC) at Greensboro ( email )

P.O.Box 26170
Greensboro, NC 27412
United States

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