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Creative Industries and Regional Productivity Growth in the Developing Economy: Evidence from Indonesia

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  • Fikri Zul Fahmi
  • Sierdjan Koster

Abstract

This paper examines the degree to which creative industries stimulate regional productivity growth in a developing country, Indonesia. The Indonesian government promotes long†established “traditional†craft businesses as creative industries, but they pay less attention to new knowledge creation and focus on highlighting heritage values as selling points. Our findings show that the “real†creative industries are still scarce and found mostly in fairly advanced urban regions. These industries are more likely to be an indicator than a driver of regional economic development. Meanwhile, those traditional businesses are much larger than creative industries and potentially contribute to regional productivity through consumption activities, thereby requiring different policy strategies.

Suggested Citation

  • Fikri Zul Fahmi & Sierdjan Koster, 2017. "Creative Industries and Regional Productivity Growth in the Developing Economy: Evidence from Indonesia," Growth and Change, Wiley Blackwell, vol. 48(4), pages 805-830, December.
    • Handle: RePEc:bla:growch:v:48:y:2017:i:4:p:805-830
    DOI: 10.1111/grow.12212
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    Cited by:

    1. Goya, Daniel, 2022. "Marshallian and Jacobian Externalities in Creative Industries," IDB Publications (Working Papers) 11962, Inter-American Development Bank.
    2. Olena Khlystova & Yelena Kalyuzhnova, 2023. "The impact of the creative industries and digitalization on regional resilience and productive entrepreneurship," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1654-1695, October.

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