Economic Effects of Cultural and Creative Sector(s): Evidence from Input-Output Analysis
The paper will address the comparison of production-, value-added- and employment- Keynesian multipliers between the sectors of the arts and sectors of cultural and creative industries. The main hypothesis to be tested will be: “Production, value-added and employment multipliers for cultural and/or creative industries are on average greater than multipliers for the “core” arts sectors”. Main rationale for setting of the hypothesis is the commonly heard claim that cultural and creative industries (and not the “core” arts fields, using terminology of Throsby 2001) are the drivers of growth in the economy (see e.g. KEA 2006; European Competitiveness Report 2010). This of course has serious policy consequences (creative industries have already topped the EU agenda in development policy) as well as consequences for the field of arts and culture in general and therefore needs better data analysis before continuing policy actions.
The hypothesis will be tested using Eurostat data (supply and use tables) for 27 European countries in years 1995-2012. Dynamic nature of the data will also enable us to study the determinants of the multipliers in the panel of countries in years 1995-2012.
Methodologically the paper will consist of three parts. Firstly, we will present a comprehensive literature review in the field of economic effects of different cultural subsectors as well as economic effects of culture and cultural and creative industries in general. Secondly, Keynesian multipliers will be calculated by transforming supply and use tables into symmetric input-output tables and then calculating the multipliers from the latter using commonly used input-output algebraic procedures (see e.g. Ten Raa 2005; Leontief 1986; Babić 1990). Thirdly, we will use panel data regression methods to study the determinants of multipliers in the selected panel sample.
The paper will be one of the first examinations of Keynesian multipliers analysed separately for the core arts sectors vs. cultural and creative industries. By this it will enable a better and much broader insight and comparison of economic effects of different cultural subsectors, a topic which hasn’t been given much consideration in the literature, despite David Cwi’s saying already in 1980’s that arts impact studies are becoming the most widely subsidized form of research in the arts. Secondly, there has been to our best knowledge so far no real attempt to study the determinants of economic impact of cultural sectors using regression methods with Keynesian multipliers as dependent variables. Finally, there have been so far very few attempts to thoroughly use the database available at Eurostat to get better insight into the dynamics of the multipliers across sectors in the economy.
Events Calendar01 / 2021