Academic journal article Indian Journal of Economics and Business

Are the Creative Exports Inducing Economic Growth? Evidence from Arab Countries

Academic journal article Indian Journal of Economics and Business

Are the Creative Exports Inducing Economic Growth? Evidence from Arab Countries

Article excerpt


Using panel co-integration analysis and the Dynamic Ordinary Least Squares (DOLS) estimator, this paper examines the long-run relationship between creative exports and economic growth, in eight Arab countries (Algeria, Bahrain, Jordan, Lebanon, Morocco, Oman, Saudi Arabia, and Tunisia) during the period (2002-2011). The main finding indicates that there is evidence on the long run relationship between creative goods exports and economic growth in the Arab countries sample. Similarly, the creative goods exports have a significant positive effect on economic growth in these countries.

Keywords: creative economy; creative industries; economic growth; Arab countries; panel cointegration.

JEL classification: F140; Z11, O11, O470


Creative economy is a new dynamic sector in the world trade, and increasingly being recognized as a key force driving economic growth. Unlike the traditional economy, which is driven by the availability of natural recourse, creative economy is driven by knowledge and information. This means that creativity is not a given resource, but it is deeply embedded in a country's social and historical context. So it provides new opportunities for many countries to develop new areas of trade and economic growth.

The term "creative economy" has been appeared since 2001, in John Howkins' book, which described it as a new relationship between creativity and economics, creates extraordinary value and wealth (UNCTAD, 2008). From the creative class' point of View, Florida (2002) defined the creative economy, as a set of occupations in which people "add economic value through their creativity".

UNCTAD (2008, 2010) defined creative economy as "the cycles of creation, production, and distribution of goods and services that use creativity and intellectual capital as primary inputs. They constitute a set of knowledge-based activities, focused on but not limited to arts, potentially generating revenues from trade and intellectual property right. They comprise tangible products and intangible intellectual or artistic services with creative content, economic value and market objectives"

The last definition considers the "creative economy" as an evolving concept Based on creative assets potentially generating economic growth and development. It fosters income-generation, job creation and export earning while promoting social inclusion, cultural diversity and human development. It embraces economic, cultural and social aspects interacting with technology, intellectual property and tourism objectives. It is a set of knowledge-based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy. It is a feasible development option calling for innovative, multidisciplinary policy responses and interministerial action. At the heart of the creative economy are the creative industries.

According to Peters (2010), the conception of the creative economy refers to "those broadly defined design industries and institutions that draw on the individual and increasingly collective resources of creativity, skill and talent that have strong potential for the generation of wealth and job creation through the development and exploitation of intellectual property".

The first definition of creative industries appeared in the UK creative industries mapping document (DCMS, 1998). And in compatible to Florida (2002), Swenson and Eathington, (2003) considered that creative industries are those that employ large fractions of the creative workforce, invest heavily in research and development, or create and distribute technologically sophisticated or artistic goods and services.

UNCTAD (2004) referred to creative industries as a group of activities in which it is used intensively and with a particularly high degree of professional specificity. These activities lie at the crossroads between the arts, business and technology. …

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