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Creative industries and economic performance: Should South Africa go to the movies?

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  • Andrew Phiri

    (Department of Economics, Nelson Mandela University)

Abstract

Creative industries have been recently considered as a possible avenue for improving economic performance. Our study focuses on the film sector and its influence on the South African economic growth, per capita income and employment. Our autoregressive lag distributive (ARDL) estimates on a log-linearized endogenous growth model augmented with creative capital indicate that the production of movies has no significant effects on long-run GDP growth, per capita GDP and employment. We only find a short-run positive and significant influence of film production on per capita income. However, re-estimating the regressions with interactive terms between movie production and i) government spending ii) foreign direct investment, improve the significance of film regression coefficients which all turn positive and significant over the long-run equilibrium. Policy implications based on our empirical findings are discussed.

Suggested Citation

  • Andrew Phiri, 2020. "Creative industries and economic performance: Should South Africa go to the movies?," Working Papers 2002, Department of Economics, Nelson Mandela University, revised Jan 2020.
    • Handle: RePEc:mnd:wpaper:2002
    as

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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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