Economic development and the creative industries: a story of causality


Cultural and creative industries are seen as an engine of economic growth. Over the last decade, research has attempted to link the increased intensity of these industries to the region’s well-being. However, this is a controversial relationship that has yet to be proven. In this article, we build a conceptual framework to help us test the possible causality between regional income generation and employment in the cultural and creative sectors. Using European regional data for 1999-2008, our results show that there is significant feedback (bidirectional causality) between GDP per capita and employment intensity in the cultural and creative industries, which allows us to conclude that there is a “virtuous circle” fuelled by these industries.

Journal Article Data de publicació 2014 Journal Creative Industries Journal Volume 7 Issue 2 DOI