Governance Quality and the Creative Economy: A Multi-dimensional Analysis of Asian Countries

Huynh, Cong Minh (2026): Governance Quality and the Creative Economy: A Multi-dimensional Analysis of Asian Countries.

Abstract

This study investigates the multidimensional effects of governance quality on the development of the creative economy in 31 Asian countries over the period 2002–2023. Employing fixed-effects (FE) estimations and the System Generalized Method of Moments (System GMM) to address endogeneity and dynamic panel bias, the findings reveal that all dimensions of governance quality exert positive and statistically significant effects on creative economy performance, although their magnitudes differ substantially across dimensions. Control of corruption, government effectiveness, and regulatory quality emerge as the most influential drivers, while rule of law, political stability, and voice and accountability also play important roles in expanding and sustaining creative economic activities. These results reaffirm the central importance of governance as an institutional foundation for creative economy development and highlight the complementarity - rather than substitutability - among governance pillars. By providing comprehensive quantitative evidence for Asia, this study contributes to the literature and offers policy-relevant insights for fostering innovation, strengthening commercialization capacity, and unlocking the creative potential of Asian economies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Governance quality, creative economy, control of corruption, government effectiveness, regulatory quality, Asia.
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; L - Industrial Organization > L8 - Industry Studies: Services > L82 - Entertainment ; Media; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z11 - Economics of the Arts and Literature

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