The Study Of Influence Of Brand-Building On China’s Economic Growth

Currently,the domestic economy is facing overcapacity problem in many industries,overcapacity is causing corporate earnings difficulties and constraining economic growth,the reason for this phenomenon is not a lack of demand,but the lack of effective supply.Under this background,the government advocates the supply-side structural reforms,focusing on improving the quality and efficiency of the supply system,which requires vigorous development of china’s brand strategy.Brand-building has an important and far-reaching impact on product upgrading and productivity improving of enterprises.Therefore,the brand development strategy is an important starting point for supply-side reforms.The market’s overall efficiency improvement depends on effective matching and integration of supply side and demand side.Based on this idea,the paper discusses the significant impact on economic growth of brand building from the perspective of the consumption,thus contributing to the overall awareness of the importance of brand building.Based on the perspective of asymmetric information,this paper probes the effects of brand-building on economic growth.Firstly,by the analysis of the theoretical mechanism,we can know the brand-building through information display mechanism and reputation mechanism reduces the product quality information asymmetry and improves the efficiency of consumer choice thus avoiding "the Lemon market" phenomenon.This outcome promotes high-quality products and high-quality intermediate products consumption,thus promoting long-term economic growth according to the product quality upgrading model.Secondly,this paper constructs an index composed by the number of applications for trademark registration and advertising revenue for measuring the status of brand building,and then constructs an autoregressive time series VAR model. In the empirical process,the paper makes use of unit root test,Johensan cointegration test, Granger causality test and so on, and carries out the impulse response function analysis and variance decomposition analysis.The results show that trademark applications for long-term economic growth have positive effects but advertising has weakly negative effect.Furthermore,in order to expound the importance of brand building vividly,the paper also introduces the analysis of case based on geographical indication.Finally,based on results of this study,the paper also puts forward relevant policy recommendations for the future domestic brand-building.