Hitit Ekonomi ve Politika Dergisi (Jun 2021)
An Investigation of the Causality Relationship Between Domestic and Foreign Sales Revenues and Advertising and Promotional Expenses: Toda Yamamoto Causality Analysis
Abstract
This study tries to determinethe relationship between domestic and foreign sales andadvertising and promotion expenses in terms of causality. In this direction, the research is carried out for one of the leading brands of the white goods sector, which continues its sales activities in the country and abroad. Within the framework of panel data analysis, data on the advertising and promotion expenses and sales of the brand between 2007 and 2020 were used. To the panel analysis result, it was determined that the series were cointegrated. According to the results of the analysis performed by the Toda-Yamamato causality test, it was found that there was a two-way causality between advertising and promotion expenditures and foreign sales, and a one-way causality relationship between domestic sales andadvertising and promotion expenditures.
