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The Indian film industry in a changing international market

Author

Listed:
  • Sayantan Ghosh Dastidar

    (University of Derby)

  • Caroline Elliott

    (Aston University)

Abstract

India has a longstanding reputation for its acclaimed film industry and continues to be by far the world’s largest producer of films. Nevertheless, domestic demand for films appears to be waning as in a number of developed countries with mature film industries. Hence, the econometric analysis in this paper is particularly timely as with demand for films in Indian cinemas falling it is important to identify those factors that make films appealing for Indian audiences. An original dataset is utilised that includes data on all Bollywood films released in India between 2011 and 2015. Account is taken of the potential endogeneity between variables through the use of the generalised method of moments approach. Results are used to demonstrate how the Indian film market can continue to have a significant positive impact on the Indian economy. The discussion highlights appropriate film production company strategies and government policy responses that should be considered to ensure the continued success of the Indian film industry both domestically and in an increasingly competitive international market.

Suggested Citation

  • Sayantan Ghosh Dastidar & Caroline Elliott, 2020. "The Indian film industry in a changing international market," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(1), pages 97-116, March.
    • Handle: RePEc:kap:jculte:v:44:y:2020:i:1:d:10.1007_s10824-019-09351-6
    DOI: 10.1007/s10824-019-09351-6
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    More about this item

    Keywords

    India; Institutions; Competition; Film performance; Quality signals;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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