The Impact of Creative Industries on Gross Domestic Product Using Generalized Method of Moments (GMM)

Zobeiri, Hoda; Jafari Samimi, Ahmad; Ehsani, Maryam

doi:10.22059/ier.2024.333593.1007313

The Impact of Creative Industries on Gross Domestic Product Using Generalized Method of Moments (GMM)

Document Type : Research Paper

Authors

Hoda Zobeiri

Ahmad Jafari Samimi

Maryam Ehsani

Faculty of Economics & Administrative Science, University of Mazandaran, Babolsar, Iran

10.22059/ier.2024.333593.1007313

Abstract

Creative industries are growing rapidly and have a high potential for employment and income creation. The growing importance of creative industries in increasing the prosperity and development of countries has been confirmed by many empirical studies. These industries offer a new experience of economic value in a variety of products, both tangible and intangible, through the integration and transfer of extensive knowledge, skills, and innovations into all sectors of today's economy. According to UNCTAD, creative industries include traditional cultural industries such as publishing, media, television, film, performing arts and crafts, as well as modern and creative cultural industries and services such as advertising, architecture, design, and photography. The present study examines the effect of creative industries on the GDP of 98 developed and developing countries from 2011 to 2019. The generalized Method of Moments (GMM) has been used to examine and evaluate the research model. The results of this study demonstrate the positive and significant effect of "creative industries" including production and services in creative, cultural, and artistic fields on the GDP of the studied countries.

Keywords

Art

Creative Industries

Cultural Industries

Generalized Method of Moments (GMM)

Gross Domestic Product (GDP)

Sustainable Development

Subjects

Macroeconomics

Abisuga O. A., & Sirayi, M. (2018). The Role of Creative Industries as a Driver for a Sustainable Economy: A Case of South Africa. Creative Industries Journal, 11(3), 225-244.‏

Alesina, A., & Perotti, R. (1996). Income Distribution, Political Instability, and Investment. European Economic Review, 40(6), 1203-1228. ‏

Altman, M. (2001). Culture, Human Agency, and Economic Theory: Culture as a Determinant of Material Welfare. The Journal of Socio-Economics, 30(5), 379-391. ‏

Aoyama, Y. (2007). The Role of Consumption and Globalization in a Cultural Industry: The Case of Flamenco. Geoforum, 38(1), 103-113. ‏

Arellano, M., & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. The Review of Economic Studies, 58(2), 277-297. ‏

Baltagi, B. H. (2008). Forecasting With Panel Data. Journal of Forecasting, 27(2), 153-173. ‏

Barro, R. J. (1990). Government Spending in a Simple Model of Endogeneous Growth. Journal of Political Economy, 98, 103-S125. ‏

Boccella, N., & Salerno, I. (2016). Creative Economy, Cultural Industries and Local Development. Procedia-Social and Behavioral Sciences, 223, 291-296.‏ ‏

Bond, S. R. (2002). Dynamic Panel Data Models: a Guide to Micro Data Methods and Practice. Portuguese Economic Journal, 1(2), 141-162. ‏

Csikszentmihalyi, M. (1999). Implications of a Systems Perspective for the Study of Creativity. Cambridge: Cambridge University Press.

Cunningham, S., Ryan, M., Keane, M., and Ordonez, D. (2004). Financing Creative Industries in Developing Country Contexts. Retrieved from https://eprints.qut.edu.au/2504/

DeNatale, D., Wassall, G., & New England Foundation for the Arts. (2007). The Creative Economy: A New Definition. Boston, MA: New England Foundation for the Arts. Retrieved from http://www.nefa.org/sites/default/files/ResearchCreativeEconReport2007.pdf

Dharmani, P., Das, S., & Prashar, S. (2021). A Bibliometric Analysis of Creative Industries: Current Trends and Future Directions. Journal of Business Research, 135, 252-267.‏

Dronyuk, I., & Moiseienko, I. (2019). Analysis of Creative Industries Activities in European Union Countries. Procedia Computer Science, 160, 479-484.‏

Emilia, Ţ., Vergil, V., & Monica, T. (2008). The Impact of Cultural-Creative Industries on the Economic Growth-a Quantitative Approach. Annals of the University of Oradea, Economic Science Series, 17(2), 56-70. ‏

Fischer, S. (1993). The Role of Macroeconomic Factors in Growth. Journal of Monetary Economics, 32(3), 485-512.

Flew, T. (2002). Beyond Ad Hocery: Defining Creative Industries. In Cultural Sites, Cultural Theory, Cultural Policy, The Second International Conference on Cultural Policy Research.

Frankel, J. A., & Romer, D. H. (1999). Does Trade Cause Growth? American Economic Review, 89(3), 379-399.

Ghazinoory, S., Malekifar, S., Nasri, S., & Kousari, S. (2021). Visioning for Cultural Industries: CLA Inspired Scenario Method. Futures,‏‏ 131, Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0016328721000793

Gouvea, R., & Vora, G. (2018). Creative Industries and Economic Growth: Stability of Creative Products Exports Earnings. Creative Industries Journal, 11(1), 22-53.

Howkins, J. (2002). The Creative Economy: How People Make Money from Ideas. London: Penguin UK.‏

Jones, C., Svejenova, S., Pedersen, J. S., & Townley, B. (2016). Misfits, Mavericks and Mainstreams: Drivers of Innovation in the Creative Industries. Organization Studies, 37(6), 751-768. ‏

Kibbe, B. (1982). Cultural Industries: A Challenge for the Future of Culture. UNESCO, 112(45), 120-135. ‏

Lanati, M., & Venturini, A. (2017). The Import of' Cultural Goods' and Emigration: an Unexplored Relation. RSCAS Working Papers, 2017/24, Retrieved from https://ideas.repec.org/p/rsc/rsceui/2017-24.html

Levine, R., Loayza, N., & Beck, T. (2000). Financial Intermediation and Growth: Causality and Causes. Journal of Monetary Economics, 46(1), 31-77.‏

Li, C., & Yang, L. (2020). Import to Invest: Impact of Cultural Goods on Cross-Border Mergers and Acquisitions. Economic Modelling, 93, 354-364.‏

Li, F. (2020). The Digital Transformation of Business Models in the Creative Industries: A Holistic Framework and Emerging Trends. Technovation, 92, Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0166497217300536

Lucas Jr, R. E. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics, 22(1), 3-42.‏

Martinaityte, E., & Kregzdaite, R. (2015). The Factors of Creative Industries Development in NowadaysStage. Economics & Sociology, 8(1), 56-70.‏

Merkel, J. (2017). Richard Florida: The Rise of the Creative Class. In F. Eckardt (Eds.), Key Works in Urban Research. Wiesbaden: Springer.

Moore, I. (2014). Cultural and Creative Industries Concept–A Historical Perspective. Procedia-Social and Behavioral Sciences, 110, 738-746.‏

Nurse, K., & Nicholls, A. (2011). Enhancing Data Collection in the Creative Industries Sector in Cariforum. Retrieved from https://www.academia.edu/download/31204241/Data_Collection_in_the_Creative_Industries_Sector.pdf

Padalino, S., & Vivarelli, M. (1997). The Employment Intensity of Economic Growth in the G-7 Countries. International Labour Review, 136, 191-213.

Pedroni, P., & Sheppard, S. (2013). Culture Shocks and Consequences: the Causal Link Between the Arts and Economic Growth. Retrieved from https://web.williams.edu/Economics/ArtsEcon/

Potts, J. (2011). Creative Industries and Economic Evolution. Massachusetts: Edward Elgar Publishing.‏

Potts, J., & Cunningham, S. (2010). Four Models of the Creative Industries. Revue Deconomie Politique, 120(1), 163-180.‏

Rodrigues, M., & Franco, M. (2019). Composite Index to Measure Cities’ Creative Performance: An Empirical Study in the Portuguese Context. Sustainability, 11(3), 774-785.

Ramsey, F. P. (1928). A Mathematical Theory of Saving. The Economic Journal, 38(152), 543-559.‏

Romer, P. M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002-1037.‏

Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70(1), 65-94.‏

UNCTAD. (2018). Creative Economy Outlook: Trends in International Trade in Creative Industries. United Nations Conference on Trade and Development, Retrieved from https://unctad.org/webflyer/creative-economy-outlook-trends-international-trade-creative-industries

Xiang, H. Y. (2014). Principles of National Cultural Strategy and Cultural Industries Development (1-9). In China Cultural and Creative Industries Reports 2013. Berlin: Springer.‏

Yi, X., Throsby, D., & Gao, S. (2021). Cultural Policy and Investment in China: Do They Realize the Government’s Cultural Objectives? Journal of Policy Modeling, 43(2), 416-432.‏

Zhou, S., Siriboonchitta, S., & Maneejuk, P. (2020). The Impact of Cultural Industry on Economic and Employment Growth in China. Journal of Administrative and Business Studies, 6(4), 129-137.