Global trade in creative services: an empirical exploration

Abstract

ABSTRACTWhile global trade continues to rise steadily, the role of creative goods and services has been increasingly recognised for their contribution to economic development and growth. Export markets are an important component of creative goods and services. We assess the stability of earnings from exports of creative services exports. Creative services reflect the fundamental aspects of an economy, not only for the traditional factors of production but also for intangibles such as human capital, animated creative and innovative spirit of citizens and the infrastructure items of education system, development of information and communications technology (ICT), intellectual property regime of patents and copyrights, tourism and hospitality services and affordability of non-traditional tools of creativity. We use various samples of countries to encompass factor-driven, efficiency-driven and knowledge-driven economies. These samples are used to assess the performance of exports of creative services over the period 2003–2012. The results indicate that knowledge-driven economies are in the best position to gain handsomely from export of creative services. The economies at different stages of development need different imaginative policies for both traditional development and creative industries development. The paper discusses implications for decision-makers, trade development policies, the state's role in fostering the development of creative industries and trade in creative services, and the public--private partnerships. An inescapable conclusion is that governmental support (direct financial, various forms of subsidies, facilities building, various regulatory regimes, etc.) is as indispensable as it was for industrial, agricultural or ICT sectors of the economy.