The Impact of Creative Industries on Employment Rate Using the Generalized Method of Moments (GMM)

In recent years, the increasing significance of creative industries has made them a topic of discussion in global economics. This has profound ramifications for the economic structures and employment of societies as the creative industries swiftly emerge as potent engines of economic growth and development. Creative industries utilize the creativity, innovation, skills, and aptitude of individuals to generate employment and have a high expansion potential. Using GMM the current study investigates the impact of creative industries on employment in 98 selected countries from 2011 to 2020. The results of this study indicate a positive and statistically significant effect of “creative industries” on employment in our three different models. The coefficient of creative industries in developed countries (0.3539) is greater than its value in developing countries (0.2992), as indicated by the results obtained. Consequently, it is anticipated that the influence of artistic, cultural, and creative productions on employment in these nations will be greater than in developing nations. Also, the results has demonstrated that inflation has an adverse effect on employment, while human capital, gross domestic product, investment, and the level of economic openness all have a positive influence on employment.