Mediating Effect of Advertising Expenditure on Labour Productivity - A Case of Manufacturing Industries in Pakistan

Tariq Mahmood
Additional contact information
Tariq Mahmood: Pakistan Institute of Development Economics, Islamabad.

The Pakistan Development Review, 2015, vol. 54, issue 1, 1-15

Abstract: This paper explores the possibility that the labour productivity enhancing effects often ascribed to capital intensity may partly act through some mediating variable. The paper uses a mediation model to estimate direct and indirect effects of capital intensity on labour productivity in Pakistan‘s manufacturing industries. The data involve 229 industries at five-digits level of aggregation. The data are taken from Census of Manufacturing Industries for the year 2005-06. Using capital intensity as an independent variable and advertising expenditure as a mediating variable, the paper estimates total, direct, and indirect effects on labour productivity. Approximately 18 percent of total effects on labour productivity are found to be mediated through advertising expenditure. The statistical significance of indirect effects is tested using standard normal tests as well as bootstrap method, and these effects are found to be significant.

Keywords: Productivity; Mediation; Advertising; Industries (search for similar items in EconPapers)
JEL-codes: C31 D24 L60 M37 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/2015/Volume1/1-15.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:54:y:2015:i:1:p:1-15

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().