Abstract Theoretical analysis shows the interdependence of advertising expenditure and consumption increase. Advertising can stimulate consumption through inducing the potential demand of consumers and consumption growth will also urge enterprises to increase advertising spending. The authors explored the relationship between advertising expenditures and consumption increase through a multivariate VAR model based on the time series data from 1981 to 2009. The results of co-integration test show that there is a long term equilibrium among advertising expenditure and consumption expenditure of urban and rural residents, and advertising expenditure is the Granger cause of the growth in urban and rural consumption. Impulse response and variance decomposition show that the stimulatory effects of advertising on consumption decline constantly and present a long term equilibrium trend. From the macro integral perspective, corporate long-term advertising placement should maintain rational and advertising expenditure should maintain stable and reasonable.
XIE Jia-Bian,CHEN Wen-Xing,Niu-Li-Min. Advertising Expenditure and Consumption Increase: An Empirical Study Based on the Time Series Data from 1981 to 2009. Economic Survey, 2012, (1): 0127.
2012, Vol. 
