Does cultural economics affect country’s competitiveness?
Abstract
Purpose – the purpose of the article is to identify factors of cultural economics and examine their impact on countries’ competitiveness.
Research methodology – in this study, the following factors have been determined to affect the competitiveness of the European Union countries: cultural employment by age (18–65), general government expenditure on cultural services, households expenditure on cultural goods, persons working as creative and performing artists, authors, journalists and linguists engaged in individual activity and employment. Panel data, which are processed with the Gretl software, are used for the study.
Findings – the results revealed that all the distinguished factors affect the competitiveness of the European Union countries; however, general government expenditure by function has the most significant effect.
Research limitations – the article analyses all countries of the European Union except Romania because there is a lack of statistical data on this country, which interferes with the research. Practical implications – as cultural economics is linked to both the public and private sectors, the revenue and the products it generates undoubtedly contribute to the country’s economic development and, hence, competitiveness.
Originality/Value – cultural economics is an interdisciplinary field of scientific research described and analysed by various authors as the interaction of human-made activities with new technologies, various artistic forms, knowledge, and creativity. Consequently, cultural economics has received more and more attention. However, the factors of cultural economics and their impact on a country’s competitiveness level is a fragmentarily examined topic which shows its originality.
Keyword : cultural economics, competitiveness, Global Competitiveness Index (GCI) European Union Countries, panel regression
How to Cite
Astikė, K. (2022). Does cultural economics affect country’s competitiveness?. Business, Management and Economics Engineering, 20(2), 224–236. https://doi.org/10.3846/bmee.2022.17308
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Li, J. (2020). Culture and tourism-led peri-urban transformation in China – The case of Shanghai. Cities, 99, 102628. https://doi.org/10.1016/j.cities.2020.102628
Li, X. (2020). Cultural creative economy and urban competitiveness: How one matters to the other. Journal of Urban Affairs, 42(8), 1164–1179. https://doi.org/10.1080/07352166.2020.1727293
Ljunggren, J. (2016). Economic rewards in the cultural upper class: The impact of social origin on income within the Norwegian field of culture. Poetics, 57, 14–26. https://doi.org/10.1016/j.poetic.2016.05.003
Herciu, M., Ogrean, C., & Belascu, L. (2011). Culture and national competitiveness. African Journal of Business Management, 5(8), 3056–3062.
Minola, T., Criaco, G., & Obschonka, M. (2016). Age, culture, and self-employment motivation. Small Business Economics, 46(2), 187–213. https://doi.org/10.1007/s11187-015-9685-6
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Werck, K., Heyndels, B., & Geys, B. (2008). The impact of ‘central places’ on spatial spending patterns: Evidence from Flemish local government cultural expenditures. Journal of Cultural Economics, 32, 35–58. https://doi.org/10.1007/s10824-007-9056-5
Wiśniewska, A., Budziński, W., & Czajkowski, M. (2020). An economic valuation of access to cultural institutions: Museums, theatres, and cinemas. Journal of Cultural Economics, 44(4), 563–587. https://doi.org/10.1007/s10824-020-09375-3
Ali, I. S. (2021). A correlational study of organizational culture and workforce diversity & competitiveness in a challenging global educational environment. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 12(4), 1–15. https://doi.org/10.14456/ITJEMAST.2021.82
Arseneault, R., & Roulin, N. (2021). A theoretical model of cross-cultural impression management in employment interviews. International Journal of Selection and Assessment, 29(3–4), 352–366. https://doi.org/10.1111/ijsa.12348
Autio, E., Pathak, S., & Wennberg, K. (2013). Consequences of cultural practices for entrepreneurial behaviors. Journal of International Business Studies, 44(4), 334–362. https://doi.org/10.1057/jibs.2013.15
Baluku, M. M., Kikooma, J. F., Bantu, E., Onderi, P., & Otto, K. (2019). Impact of personal cultural orientations and cultural intelligence on subjective success in self-employment in multi-ethnic societies. Journal of Global Entrepreneurship Research, 9(1). https://doi.org/10.1186/s40497-018-0144-0
Barrado-Timón, D., Palacios, A., & Hidalgo-Giralt, C. (2020). Medium and small cities, culture and the economy of culture. A review of the approach to the case of Spain in light of international scientific scholarship. Sustainability, 12(18). https://doi.org/10.3390/su12187321
Bacsci, Z. (2018). A globális versenyképesség és a kulturális heterogenitás kapcsolata [Global competitiveness and cultural heterogeneity]. Tér és Társadalom, 32(4), 185–201. https://doi.org/10.17649/TET.32.4.3063
Bilan, Y., Vasilyeva, T., Kryklii, O., & Shilimbetova, G. (2019). The creative industry as a factor in the development of the economy: Dissemination of european experience in the countries with economies in transition. Creativity Studies, 12(1), 75–101. https://doi.org/10.3846/cs.2019.7453
Daubaraite-Radikiene, U., & Startiene, G. (2022). Index-based measurement of creative industries’ impact on national economy. Inžinerinė Ekonomika-Engineering Economics, 33(1), 13–26. https://doi.org/10.5755/j01.ee.33.1.27869
Dudáš, T., & Cibuľa, A. (2018). The changing methodology of the Global Competitiveness Index and its impact on Slovakia. Journal of Interdisciplinary Research, 8(2), 50–53.
Ercolano, S., & Romano, O. (2018). Spending for the environment: General government expenditure trends in Europe. Social Indicators Research, 138(3), 1145–1169. https://doi.org/10.1007/s11205-017-1695-0
Getzner, M. (2015). Cultural politics: Exploring determinants of cultural expenditure. Poetics, 49, 60–75. https://doi.org/10.1016/j.poetic.2015.02.001
Grillitsch, M., & Tavassoli, S. (2018). Cultural diversity and employment growth: Moderating effect of the recent global financial crisis. Australian Journal of Management, 43(4), 632–652. https://doi.org/10.1177/0312896218765260
Hamlin, D. (2019). Do homeschooled students lack opportunities to acquire cultural capital? Evidence from a nationally representative survey of American households. Peabody Journal of Education, 94(3), 312–327. https://doi.org/10.1080/0161956X.2019.1617582
Houkamau, C. A., & Sibley, C. G. (2019). The role of culture and identity for economic values: A quantitative study of Māori attitudes. Journal of the Royal Society of New Zealand, 49(sup1), 118–136. https://doi.org/10.1080/03036758.2019.1650782
Kaimann, D., & Cox, J. (2021). A comparative analysis of consumption: Evidence from a cultural goods market. Sustainability, 13(23). https://doi.org/10.3390/su132313275
Karimzadi, S. (2019). Culture in economics. Advances in Economics and Business, 7(1), 8–14. https://doi.org/10.13189/aeb.2019.070105
Knapčíková, L., Behúnová, A., & Behun, M. (2021). The strategic impact of e-business on competitiveness of the enterprise. Mobile Networks and Applications, 1–9. https://doi.org/10.1007/s11036-021-01787-5
Koltsova, A., Alpatov, G., & Volkova, A. (2020). Culture in the global economy: features of cultural goods on the threshold of a knowledge economy and increasing the country’s competitiveness. SHS Web of Conferences, 74, 01015. https://doi.org/10.1051/shsconf/20207401015
Kowal, J., & Paliwoda-Pękosz, G. (2017). ICT for global competitiveness and economic growth in emerging economies: Economic, cultural, and social innovations for human capital in transition economies. Information Systems Management, 34(4), 304–307. https://doi.org/10.1080/10580530.2017.1366215
Li, J. (2020). Culture and tourism-led peri-urban transformation in China – The case of Shanghai. Cities, 99, 102628. https://doi.org/10.1016/j.cities.2020.102628
Li, X. (2020). Cultural creative economy and urban competitiveness: How one matters to the other. Journal of Urban Affairs, 42(8), 1164–1179. https://doi.org/10.1080/07352166.2020.1727293
Ljunggren, J. (2016). Economic rewards in the cultural upper class: The impact of social origin on income within the Norwegian field of culture. Poetics, 57, 14–26. https://doi.org/10.1016/j.poetic.2016.05.003
Herciu, M., Ogrean, C., & Belascu, L. (2011). Culture and national competitiveness. African Journal of Business Management, 5(8), 3056–3062.
Minola, T., Criaco, G., & Obschonka, M. (2016). Age, culture, and self-employment motivation. Small Business Economics, 46(2), 187–213. https://doi.org/10.1007/s11187-015-9685-6
Reese, Z. A., Garcia, S. M., & Edelstein, R. S. (2022). More than a game: Trait competitiveness predicts motivation in minimally competitive contexts. Personality and Individual Differences, 185, 111262. https://doi.org/10.1016/j.paid.2021.111262
Rius-Ulldemolins, J., Pizzi, A., & Rubio Arostegui, J. A. (2019). European models of cultural policy: Towards European convergence in public spending and cultural participation? Journal of European Integration, 41(8), 1045–1067. https://doi.org/10.1080/07036337.2019.1645844
Sanchez Salgado, R. (2018). Learning from cultural diversity? The case of European Union-funded transnational projects on employment. Journal of Contemporary European Studies, 26(4), 359–376. https://doi.org/10.1080/14782804.2018.1432477
Santana Ribeiro, L. C., Lopes, T. H. C. R., Ferreira Neto, A. B., & dos Santos, F. R. (2020). Cultural employment growth in Brazilian municipalities. Journal of Cultural Economics, 44(4), 605–624. https://doi.org/10.1007/s10824-020-09378-0
Song, Y., Chen, G., & Zhang, Y. (2019). HRM strategies for enhancing competitiveness of culture creative industry: Based on literature reviews. In Proceedings of the 2019 5th International Conference on Humanities and Social Science Research (ICHSSR 2019) (pp. 800–805). Atlantis Press. https://doi.org/10.2991/ichssr-19.2019.153
Šandrk Nukić, I., & Načinović Braje, I. (2022). Considerations of national culture’s role in explaining competitiveness. Ekonomski vjesnik/Econviews – Review of Contemporary Business, Entrepreneurship and Economic Issues, 30(2), 383–397.
Valverde-Moreno, M., Torres-Jimenez, M., & Lucia-Casademunt, A. M. (2021). Participative decision-making amongst employees in a cross-cultural employment setting: Evidence from 31 European countries. European Journal of Training and Development, 45(1), 14–35. https://doi.org/10.1108/EJTD-10-2019-0184
Verhun, V., Pryiatelchuk, O., & Zayats, O. (2020). Competitive features of country associations based on the global competitiveness index: The case of the United States – Mexico – Canada agreement. Problems and Perspectives in Management, 18(4), 181–190. https://doi.org/10.21511/ppm.18(4).2020.16
Werck, K., Heyndels, B., & Geys, B. (2008). The impact of ‘central places’ on spatial spending patterns: Evidence from Flemish local government cultural expenditures. Journal of Cultural Economics, 32, 35–58. https://doi.org/10.1007/s10824-007-9056-5
Wiśniewska, A., Budziński, W., & Czajkowski, M. (2020). An economic valuation of access to cultural institutions: Museums, theatres, and cinemas. Journal of Cultural Economics, 44(4), 563–587. https://doi.org/10.1007/s10824-020-09375-3