Do global brands contribute to the economy of their country of origin? A dynamic spatial approach - Publication - Bridge of Knowledge


Do global brands contribute to the economy of their country of origin? A dynamic spatial approach


Purpose - Brand positioning based on the brand’s country of origin is at the centre of attention in international marketing. It is evident that global brands constitute critical intangible assets for businesses and places. However, it is not clear how they contribute to national economies. This paper aims to discuss the significance of brands as contributing to the value of their companies but also helping to leverage national economies. Although global brands can be produced and purchased in multiple countries, their influence on the economy of the country where their owner’s seat is located can be more meaningful than in other economies included in the “global factory”. Design/methodology/approach - Based on 500 Brandirectory, the Most Valuable Global Brands 2011-2015 rankings powered by Brand Finance, the authors observed a spatial-economic autocorrelation which exemplifies the potential interdependency between gross domestic product (GDP) and brand value. This relationship has become a starting point for designing a spatial regression model. Findings - The findings support the hypothesis that assumptive spatial dependencies have a significant influence on the examined relationship of brand value and GDP. Originality/value - The presented study is the first to examine the potential interdependence between brand values and GDP of the countries of origin using a dynamic spatial approach.


  • 7


  • 7

    Web of Science

  • 1 3


Cite as

Full text

download paper
downloaded 202 times
Publication version
Submitted Version
Copyright (Emerald Publishing Limited)



artykuł w czasopiśmie wyróżnionym w JCR
Published in:
Journal of Product & Brand Management no. 27, pages 768 - 780,
ISSN: 1061-0421
Publication year:
Bibliographic description:
Kucharska W., Flisikowski K., Confente I.: Do global brands contribute to the economy of their country of origin? A dynamic spatial approach// Journal of Product & Brand Management. -Vol. 27, iss. 7 (2018), s.768-780
Digital Object Identifier (open in new tab) 10.1108/jpbm-10-2017-1641
Bibliography: test
  1. Aaker D.A., (1996), "Measuring Brand Equity Across Products and Markets", Cali- fornia Management Review, Vol. 38, pp. 102-120. open in new tab
  2. Anselin, L. (1988), "Lagrange multiplier test diagnostics for spatial dependence and spatial heterogeneity", Geographical analysis, Vol. 20 No. 1, pp. 1-17. DOI: open in new tab
  3. Anselin, L. (1995), "Local Indicators of Spatial Association-LISA", Geographical Analysis, Vol. 27, pp. 93-115. DOI: 10.1111/j.1538-4632.1995.tb00338.x open in new tab
  4. Aoyama, Y. (2016), "Reorienting the drivers of development: alternative para- digms", Area Development and Policy, Vol.1 No. 3, pp.295-304. open in new tab
  5. Arbia, G. (2006), Spatial Econometrics: Statistical Foundations and Applications to Regional Convergence, Springer-Verlag, Berlin.
  6. Assunção, R. M. and Reis, E. A. (1999), "A new proposal to adjust Moran's I for population density". Statist. Med., Vol. 18, pp. 2147-2162. Doi: 10.1002/(SICI)1097-0258(19990830)18:16<2147::AID-SIM179>3.0.CO;2-I open in new tab
  7. Balabanis, G., Siamagka N.T. (2017), "Inconsistencies in the behavioural effects of consumer ethnocentrism: The role of brand, product category and country of origin", International Marketing Review, Vol. 34 No. 2, pp. 166-182. open in new tab
  8. Bartikowski, B., Cleveland, M. (2017), "'Seeing is being': Consumer culture and the positioning of premium cars in China", Journal of Business Research, Vol. 77, pp. 195-202. DOI: open in new tab
  9. Barwise, P., Higson, C., Likierman, A., Marsh, P. (1989), Accounting for brands. London: London Business School and The Institute of Chartered Accountants in England and Wales. open in new tab
  10. Barwise, P., Higson, C., Likierman, A., Marsh P. (1990), "Brands as Separable As- sets", Business Strategy Review, Vol. 1 No. 2, pp. 43-59. DOI: BBC, (2014), open in new tab
  11. Belo, F., Lin, X., Vitorino, M. A. (2014), "Brand capital and firm value", Review of Economic Dynamics, Vol. 17 No. 1, pp. 150-169. DOI: open in new tab
  12. Brodie, R.J., Benson-Rea M. (2016), "Country of origin branding: an integrative perspective", Journal of Product and Brand Management, Vol. 25 No. 4, pp. 322- 336. DOI: open in new tab
  13. Buckley, P.J. (2009), "The impact of the global factory on economic development", Journal of World Business, Vol. 44 No. 2, pp. 131-143. DOI: open in new tab
  14. Buckley, P.J., Strange, R. (2015), "The governance of the global factory: location and control of world economic activity", Academy of Management Perspectives, Vol. 29 No. (2), pp. 237-249. DOI: open in new tab
  15. Brandirectory (2017), The most 500 Valuable Global Brands Ranking. Brand Fi- nance. (03.07.2017)
  16. Case, A., Harvey, S. R., Hines, J. R. (1993), "Budget Spillovers and Fiscal Policy Interdependence: Evidence from the States, Journal of Public Economics Vol. 52, pp. 285-307. open in new tab
  17. Cleveland, M., Papadopoulos, N., Laroche, M. (2011), "Identity, demographics, and consumer behaviors: International market segmentation across product cate- gories", International Marketing Review, Vol. 28 No. 3, pp. 244-266. open in new tab
  18. Cliff, A., Harvey, S. R. (1981), Spatial Process: Models and Applications. Pion: Lon- don.
  19. Coe, N. M., Dicken, P., Hess, M. (2008), "Global production networks: realizing the potential", Journal of Economic Geography, Vol. 8 No. 3, pp. 271-295. open in new tab
  20. Conley T. G., Tsiang G. (1994) "Spatial Patterns in Labor Markets: Malaysian De- velopment", Working Paper, University of Chicago.
  21. Conley, T. G., Tsiang, G. (1999), "GMM Estimation with Cross Sectional Depend- ence", Journal of Econometrics, Vol. 92 Issue 1, pp. 1-45. open in new tab
  22. De, S. (2014), "Intangible capital and growth in the 'new economy': Implications of a multi-sector endogenous growth model", Structural Change and Economic Dynamics, Vol. 28, pp. 25-42. DOI: open in new tab
  23. De Propris, L. (2012), "Beyond Territory. Dynamic Geographies of Knowledge Creation, Diffusion and Innovation", Regional Studies, Vol. 46 No. 10, pp. 14017- 1422. open in new tab
  24. Dettori, B., Marrocu, E., Paci, R. (2012), "Total factor productivity, intangible as- sets and spatial dependence in the European regions", Regional Studies, Vol. 46 No. 10, pp. 1401-1416. open in new tab
  25. Doyle P. (1990), "Building Successful Brands: The Strategic Options", Journal of Consumer Marketing, Vol. 7, pp. 5-20. open in new tab
  26. Dunford, M., Liu, W. (2017), "Uneven and combined development", Regional Studies, Vol. 51 No. 1, pp. 69-85. open in new tab
  27. Ferilli, G., Sacco, P. L., Teti, E., Buscema, M. (2016), "Top corporate brands and the global structure of country brand positioning: An AutoCM ANN approach", Expert Systems with Applications, Vol. 66, pp. 62-75. DOI: open in new tab
  28. Fischer, M. M., Griffith, D. A. (2008), "Modeling Spatial Autocorrelation in Spatial Interaction Data: An Application to Patent Citation Data in the European Union (2008-03)", Journal of Regional Science, Vol. 48 No. 5, pp. 969-989. open in new tab
  29. Haliakias, G., Davvetas, V., Diamantopoulos, A. (2016), "The interplay between country stereotypes and perceived brand globalness/localness as drivers of brand preference", Journal of Business Research, Vol. 69 No. 9, pp. 3621-3628. DOI: open in new tab
  30. Hamilton, K., Ruta, G., Bolt, K., Markandya, A., Pedroso-Galinato, S., Silva, P., Ordoubadi, M. S., Lange, G.M., Tajibaeva, L. (2005), Where is the wealth of na- tions?: measuring capital for the 21st century. The World Bank, Washington DC. open in new tab
  31. Hudson, R. (2016), "Rising powers and the drivers of uneven global develop- ment", Area Development and Policy, Vol. 1 No. 3, pp. 279-294. open in new tab
  32. Iammarino, S., Piva, M., Vivarelli, M., Von Tunzelmann, N. (2012), "Technological capabilities and patterns of innovative cooperation of firms in the UK re- gions", Regional Studies, Vol. 46 No. 10, pp. 1283-1301. open in new tab
  33. IAREG (2008), [13.07.2017] open in new tab
  34. Kamakura, W. A., Russell, G. J. (1993) "Measuring brand value with scanner data", International Journal of Research in Marketing, Vol. 10 No. 1, pp. 9-22. DOI: open in new tab
  35. Kerr, A. (2017), Global Games: Production, Circulation and Policy in the Networked Era. Taylor and Francis. open in new tab
  36. Klein, N. (2000), No logo. London: Flamingo.
  37. Kramer, J. P., Diez, J. R. (2012), "Catching the local buzz by embedding? Empirical insights on the regional embeddedness of multinational enterprises in Germany and the UK", Regional Studies, Vol. 46 No. 10, pp. 1303-1317. open in new tab
  38. Kucharska, W. (2016), Customer Assessment of Brand Valuation and Social Media. In ECSM2016-Proceedings of the 3rd European Conference on Social Media, pp. 134-142, DOI: 10.13140/RG.2.2.13573.35045 open in new tab
  39. Kucharska, W., Flisikowski, K. (2017), "The Most Valuable Global Brands and Con- dition of Economies: A Spatial Approach". Institute of Economic Research Working Papers, No. 53/2017. open in new tab
  40. Longley, P. A., Goodchild M. F., Maquire D. J., Rhind D.W. (2015), Geographic Information Systems and Science, 4th edition, New York: Wiley.
  41. López-Bazo, E., Moreno, R. (2012), "Profitability of investments in education: evidence from Spanish regions", Regional Studies, Vol. 46 No. 10, pp. 1333-1346. open in new tab
  42. López-Bazo, E., Motellón, E. (2012), "Human capital and regional wage gaps", Regional Studies, Vol. 46 No. 10, pp. 1347-1365. open in new tab
  43. Malik, K. Z., Ali, S. Z., Khalid, A. M. (2014), "Intangible capital in a real business cycle model", Economic Modelling, Vol. 39., pp. 32-48. DOI: open in new tab
  44. Malul, M., Hadad, Y., Ben-Yair, A. (2009), "Measuring and ranking of economic, environmental and social efficiency of countries", International Journal of Social Economics, Vol. 36 Issue: 8, pp. 832-843. DOI: open in new tab
  45. Manca, F. (2012), "Human capital composition and economic growth at the re- gional level", Regional Studies, Vol. 46 No. 10, pp. 1367-1388. open in new tab
  46. MacKinnon, D., Cumbers, A., Pike, A., Birch, K., McMaster, R. (2009), "Evolution in economic geography: institutions, political economy, and adaptation", Economic Geography, Vol. 85 No. 2, pp. 129-150. open in new tab
  47. Nakamura, L.I. (2010), "Intangible assets and national income accounting", Review of Income and Wealth, Vol. 56 No. 1, pp. 135-155. DOI: open in new tab
  48. Papadopoulos, N. (1993), What Product and Country Images Are and Are Not. In N. Papadopoulos and L.A. Heslop, eds., Product-Country Images: Impact and Role in International Marketing. Binghampton, N.Y.: The Haworth Press, pp. 1-38. open in new tab
  49. Papadopoulos, N., Hamzaoui-Essoussi L., El Banna A. (2016), "Nation branding for foreign direct investment: an Integrative review and directions for research and strategy", Journal of Product and Brand Management, Vol. 25 Issue: 7, pp. 615- 628. DOI: open in new tab
  50. Peck, J. (2016), "Macroeconomic geographies", Area Development and Policy, Vol. open in new tab
  51. Pecotich, A., Ward, S. (2007), "Global branding, country of origin and expertise: An experimental evaluation", International Marketing Review, Vol. 24 No. 3, pp. 271-296. DOI: open in new tab
  52. Pike, A. (2009), "Brand and branding geographies", Geography Compass, Vol. 3 open in new tab
  53. No.1, pp. 190-213. DOI: open in new tab
  54. Pike, A. (2011), "Placing brands and branding: a socio-spatial biography of New- castle Brown Ale", Transactions of the Institute of British Geographers, Vol. 36 No. 2, pp. 206-222. open in new tab
  55. Pike, A. (2013), "Economic geographies of brands and branding", Economic Geog- raphy, Vol. 89 No. 4, pp. 317-339. DOI: open in new tab
  56. Pike, A. (2015), Origination: The Geographies of Brands and Branding. John Wiley and Sons. open in new tab
  57. Ramos, R., Surinach, J., Artís, M. (2012), "Regional economic growth and human capital: the role of over-education", Regional Studies, Vol. 46 No. 10, pp. 1389- 1400. open in new tab
  58. Rogerson, P. (2001), "A statistical method for the detection of geographic cluster- ing", Geographical Analysis, Vol. 33, pp. 215-227. DOI: 10.1111/j.1538- 4632.2001.tb00445.x open in new tab
  59. Rojas-Méndez, J. (2013), "The nation brand molecule", Journal of Product and Brand Management, Vol. 22 No. 7, pp. 462-472. open in new tab
  60. Schiller, D., Diez, J. R. (2012), "The impact of academic mobility on the creation of localized intangible assets", Regional Studies, Vol. 46 No. 10, pp. 1319-1332. open in new tab
  61. Simon C.J., Sullivan M.W. (1993), "The Measurement and Determinants of Brand Equity: a Financial Approach", Marketing Science, Vol. 12, pp. 28-52. open in new tab
  62. Steenkamp, J.B. (2014), "How global brands create firm value: the 4V model", International Marketing Review, Vol. 31 No. 1, pp. 5-29. DOI: open in new tab
  63. Suriñach, J., Moreno, R. (2012), "Introduction: Intangible assets and regional eco- nomic growth", Regional Studies, Vol. 46 No. 10, pp. 1277-1281. open in new tab
  64. Tobler, W. (1970), "A computer model simulating urban growth in Detroit region", Economic Geography, Vol. 42 No. 2, pp. 234-240. open in new tab
  65. Tokatli, N. (2008), "Global sourcing: insights from the global clothing industry- the case of Zara, a fast fashion retailer", Journal of Economic Geography, Vol. 8 No. 1, pp. 21-38. open in new tab
  66. Tokatli, N. (2011), "Old firms, new tricks and the quest for profits: Burberry's journey from success to failure and back to success again", Journal of Economic Geography, Vol. 12 No. 1, pp. 55-77. open in new tab
  67. Tokatli, N. (2012), "Doing a Gucci: the transformation of an Italian fashion firm into a global powerhouse in a 'Los Angeles-izing'world", Journal of Economic Ge- ography, Vol. 13 No. 2, pp. 239-255. open in new tab
  68. Tokatli, N. (2014), "'Made in Italy? Who cares!' Prada's new economic geogra- phy", Geoforum, Vol. 54, pp. 1-9. open in new tab
  69. Tokatli, N. (2015), "Single-firm case studies in economic geography: some meth- odological reflections on the case of Zara. Journal of Economic Geography, Vol. 15(No. 3), pp. 631-647. DOI: open in new tab
  70. Yeung, H. W. C., Coe, N. (2015), "Toward a dynamic theory of global production networks", Economic Geography, Vol. 91 No. 1, pp. 29-58. open in new tab
  71. Wang, S., Luo, K., Liu, Y., Zhang, S., Lin, X., Ni, R., ... Gao, X. (2015), "Economic level and human longevity: spatial and temporal variations and correlation analysis of per capita GDP and longevity indicators in China", Archives of Gerontology and Geriatrics, Vol. 61 No. 1, pp. 93-102. DOI: open in new tab
  72. Winit, W., Gregory, G., Cleveland, Mark., Verlegh, P. (2014), "Global vs local brands: how home country bias and price differences impact brand evaluations", International Marketing Review, Vol. 31 No. 2, pp. 102-128. DOI: open in new tab
  73. Wood, S., Wrigley, N., Coe, N. M. (2016), "Capital discipline and financial market relations in retail globalization: insights from the case of Tesco plc", Journal of Economic Geography, Vol. 17 No. 1, pp. 31-57. doi:10.1093/jeg/lbv045 open in new tab
  74. Zéghal, D., Maaloul, A. (2011) "The accounting treatment of intangibles-A critical review of the literature", Accounting Forum, Vol. 35 No. 4, pp. 262-274. DOI: open in new tab
  75. Zhang, M., Merunka, D. (2015), "The impact of territory of origin on product au- thenticity perceptions: An empirical analysis in China", Asia Pacific Journal of Marketing and Logistics, Vol. 27 No. 3, pp. 385-405. DOI: open in new tab
Verified by:
Gdańsk University of Technology

seen 181 times

Recommended for you

Meta Tags