Relationships between Brand Value and Country's GDP

Abstract

Brand development has emerged as a critical strategy for economic prosperity where assets from both physical and nonphysical sources significantly influence a nation's economy. However, the impact of these intangible assets on economic growth still requires further clarification. This study aims to investigate the relationship between nation brand value and economic growth and to examine whether this impact varies depending on countries' income levels. Based on data from the global soft power index and gross domestic product (GDP) of 120 countries from Brand Finance Nation Brands and Word Bank in 2022, linear regression and moderation analysis results reveal that nation brand values positively impact national economic growth. The results of the moderation effect analysis by the PROCESS macro reveal that the impact of nation brand value on economic growth is significantly more substantial for lower-income economies than for higher-income economies. Our study is one of a few attempts to clarify the effect of nation brand value on a nation's economic growth. The outcome of this research provides more understanding for exploiting the nation brand development concept to create a superior competitive advantage, consequently leading to the prosperity of nation economies.