Title: Measuring labour contributions in the creation of added value in creative industries

Authors: Horas Djulius; Choi Wongyu; Juanim Juanim; Raeni Dwisanty; Alfath Prannisa

Addresses: Universitas Pasundan, Bandung-40116, Indonesia ' Chonbuk National University, 567 Baekje-daero, Deokjin-gu, Jeonju-si, Jeollabuk-do, 54896, South Korea ' Universitas Pasundan, Bandung-40116, Indonesia ' Universitas Komputer Indonesia, Bandung-40132, Indonesia ' Universitas Pasundan, Bandung-40116, Indonesia

Abstract: Recognising the determinants of the creative industry is vital to increase this industry value-added. The study of 16 creative industry sub-sectors in ten creative cities in Indonesia was conducted to depict the importance of capital and labour used in the industry. We use dynamic panel data to estimate production function that describes the relationship between industry value-added and its inputs by using firm-level panel data surveyed by Statistics Indonesia ranging from 2005 to 2015. The result shows that labour provides an essential influence on the industry value added while capital plays insignificant effect. This finding emphasises the need for more advanced capital use in creative industry in developing countries.

Keywords: creative industry; creative city; added value; labour contribution.

DOI: 10.1504/IJEPEE.2020.109582

International Journal of Economic Policy in Emerging Economies, 2020 Vol.13 No.4, pp.385 - 392

Received: 30 Aug 2019
Accepted: 02 Dec 2019

Published online: 09 Sep 2020 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article