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Measuring labour contributions in the creation of added value in creative industries

Author

Listed:
  • Horas Djulius
  • Choi Wongyu
  • Juanim Juanim
  • Raeni Dwisanty
  • Alfath Prannisa

Abstract

Recognising the determinants of the creative industry is vital to increase this industry value-added. The study of 16 creative industry sub-sectors in ten creative cities in Indonesia was conducted to depict the importance of capital and labour used in the industry. We use dynamic panel data to estimate production function that describes the relationship between industry value-added and its inputs by using firm-level panel data surveyed by Statistics Indonesia ranging from 2005 to 2015. The result shows that labour provides an essential influence on the industry value added while capital plays insignificant effect. This finding emphasises the need for more advanced capital use in creative industry in developing countries.

Suggested Citation

  • Horas Djulius & Choi Wongyu & Juanim Juanim & Raeni Dwisanty & Alfath Prannisa, 2020. "Measuring labour contributions in the creation of added value in creative industries," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 13(4), pages 385-392.
    • Handle: RePEc:ids:ijepee:v:13:y:2020:i:4:p:385-392
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    Cited by:

    1. Goya, Daniel, 2022. "Marshallian and Jacobian Externalities in Creative Industries," IDB Publications (Working Papers) 11962, Inter-American Development Bank.

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