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Creative capital accumulation and the advancement of India's creative economy

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  • Amitrajeet A Batabyal
  • Hamid Beladi

Abstract

Despite the relevance of Richard Florida's ideas about the role of creative capital in promoting the creative economy of developing nations like India, there is no theoretical research on these topics in the extant literature. Therefore, we focus on an arbitrary region in a developing country like India and then analyze the creative capital accumulation decision faced by workers in this region who aspire to membership in the so-called creative class . Specifically, we compute the present discounted value of a worker's lifetime earnings as a function of the primitives of the problem. Next, we solve for the level of education that maximizes the lifetime earnings function. Finally, we describe how this optimal level of education is affected by changes in the lifespan of workers, the interest rate, and by the growth rate of the wage function.

Suggested Citation

  • Amitrajeet A Batabyal & Hamid Beladi, 2016. "Creative capital accumulation and the advancement of India's creative economy," Environment and Planning C, , vol. 34(2), pages 356-363, March.
    • Handle: RePEc:sae:envirc:v:34:y:2016:i:2:p:356-363
    DOI: 10.1177/0263774X15614663
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    References listed on IDEAS

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    1. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2008. "Inside the black box of regional development: human capital, the creative class and tolerance," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 615-649, September.
    2. Kristina Vaarst Andersen & Høgni Kalsø Hansen & Arne Isaksen & Mika Raunio, 2010. "Nordic City Regions in the Creative Class Debate—Putting the Creative Class Thesis to a Test," Industry and Innovation, Taylor & Francis Journals, vol. 17(2), pages 215-240.
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    4. David Mcgranahan & Timothy Wojan, 2007. "Recasting the Creative Class to Examine Growth Processes in Rural and Urban Counties," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 197-216.
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    6. Nathan, Max, 2007. "The Wrong Stuff? Creative Class Theory and Economic Performance in UK Cities," MPRA Paper 29486, University Library of Munich, Germany.
    7. Hatcher, William & Oyer, Matt & Gallardo, Roberto, 2011. "The Creative Class and Economic Development as Practiced in the Rural U.S. South: An Exploratory Survey of Economic Development Professionals," The Review of Regional Studies, Southern Regional Science Association, vol. 41(2,3), pages 139-159, Fall, Win.
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    Cited by:

    1. Amitrajeet A. Batabyal & Peter Nijkamp, 2019. "Creative capital, information and communication technologies, and economic growth in smart cities," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(2), pages 142-155, February.
    2. Amitrajeet A. Batabyal & Karima Kourtit & Peter Nijkamp, 2019. "Using local public goods to attract and retain the creative class: A tale of two cities," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(3), pages 571-581, August.
    3. Amitrajeet A. Batabyal & Peter Nijkamp, 2018. "A Two-Sector Model of Creative Capital Driven Regional Economic Growth," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(3), pages 831-840, September.
    4. Batabyal, Amitrajeet & Beladi, Hamid, 2021. "On the Existence of an Equilibrium in Models of Local Public Good Use by Cities to Attract the Creative Class," MPRA Paper 105196, University Library of Munich, Germany, revised 07 Jan 2021.
    5. Batabyal, Amitrajeet A. & Beladi, Hamid, 2018. "Artists, engineers, and aspects of economic growth in a creative region," Economic Modelling, Elsevier, vol. 71(C), pages 214-219.
    6. Shatalov, S. (Шаталов, С.), 2015. "The Experience of Forming the Institute of Legal Responsibility for Economic Crimes in the United States [Опыт Формирования Института Юридической Ответственности За Экономические Преступления В Сша," Published Papers mn39, Russian Presidential Academy of National Economy and Public Administration.

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