Industrial policy, financial agglomeration, and cultural industry development: Evidence from a natural experiment in China

This study uses relevant data from 31 provinces, regions, and municipalities in China between 2006 and 2023 as a research sample, leveraging the ten major industrial revitalization plans as a natural experiment to thoroughly analyze the intrinsic connections between industrial policy, financial agglomeration, and the development of the cultural industry. The results indicate that industrial policy has a significant positive effect on the development of the cultural industry, while financial agglomeration also effectively promotes the growth of the cultural sector. Mediation effect analysis highlights that financial agglomeration plays a crucial mediating role in the relationship between industrial policy and the development of the cultural industry, with noticeable differences in this mediating effect between regions with high economic development levels and those with medium to low economic development levels. Furthermore, moderation effect analysis shows that the level of financial development serves as a significant moderator in the relationship between industrial policy and the development of the cultural industry, exhibiting distinct heterogeneity across different regions. The findings of this study provide a new perspective for understanding the complex relationships among industrial policy, financial agglomeration, and the development of the cultural industry, while also offering empirical evidence for formulating relevant policies to promote the development of the cultural sector.