The Impact of Cultural Industryon Economic and Employment Growth in China

Abstract

The current study explores the impact of cultural industries on economic and employment growth in China using the data from 2004Q1-2018Q4, taking the quarterly data of National culture and related industries value added, Employment and Gross Domestic Product as the main variables. In this study, we choose to work with the production function approach. The simultaneous equations are used to consider the impact of cultural industries on the economy and employment, and the lasso regression is used to screen out the instrument variables that can most affect the rate of national culture and related industries value added. The research will choose some macro-economic variables as instrument variables. The empirical results demonstrates that there is a positive and significant impact of the rate of national culture and related industries value added on the economic growth, but not significant to employment growth in China.