What has influenced the growth and structural transformation of China’s cultural industry? — Based on the input-output bias analysis

Abstract

This study uses the structural decomposition and bias analysis models to find the factors influencing the development of China’s cultural industry. The data comes from the input-output tables published by the National Bureau of Statistics of China from 2012 to 2020. The findings reveal that technological advancement is the main factor influencing the cultural industry, with a significantly greater impact than other factors. Besides, household consumption is another vital element in the industry’s growth, but the impact strength is relatively weaker than technological advancement. Contributions of government consumption, capital formation, and net export are observed to have a minor effect on the cultural industry’s development. Therefore, the government should strengthen its support for the cultural industry, promote the expansion of cultural consumption, and strengthen its support for technological innovation to ensure the long-term development of the cultural industry as a national soft power.

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