CORRELATION AND INTERACTION OF ECONOMIC CREATIVITY FACTORS AS A DETERMINANT OF SUSTAINABLE DEVELOPMENT (ON THE EXAMPLE OF THE EU COUNTRIES)

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  Maryna Hrysenko

  Olena Pryiatelchuk

  Liudmila Shvorak

Abstract

The creative economy is currently demonstrating quite intensive development indicators, and the share of the creative sector in GDP creation is constantly growing. The aim of this article is to reveal the interrelation and interdependence of socio-economic development factors and to clarify the place of the creative sector in ensuring sustainable economic growth. On the basis of 19 variables, the economies of the EU countries were analyzed by means of cluster analysis, which allowed the authors to single out 8 clusters in the constructed dendrogram, united by the nature and trends, as well as the role of the creative sector in these processes. In addition, the degree of correlation and interaction between the influencing factors themselves was described. Using RStudio, the authors built two multiple regression models, where the dependent variables were GDP and the global creativity index, and the factors were the indicators used to calculate the creativity index. Innovations and creativity are one of priorities of the program of socio-economic development of the European Union. There is a universal approach to understanding the importance of creative economy in the EU. However, the practical implementation of the strategy of development and activity of the creative industries by the EU countries is carried out in the following different directions – the foreign economic expansion of the creative industries themselves; the promotion of all national culture at the international level; export-oriented development of the creative sector of the economy; the lack of a separate comprehensive strategy of foreign economic activity for the creative industries, but the implementation of various programs and measures aimed at promoting exports of products of these industries as part of a national development strategy. Overall, the active functioning of the EU creative sector directly or indirectly affects the economy by improving its performance and creating jobs, stimulating innovation, and contributing to social and sustainable development. As a result, it was found that the global creativity index is largely dependent on the share of the creative class. It has also been proved that the creative and cultural industries determine the growth of a country's economy in terms of traditional economic and employment indicators. Investments in the creative economy will increase the qualitative and quantitative indicators of sustainable economic development.

How to Cite

Hrysenko, M., Pryiatelchuk, O., & Shvorak, L. (2022). CORRELATION AND INTERACTION OF ECONOMIC CREATIVITY FACTORS AS A DETERMINANT OF SUSTAINABLE DEVELOPMENT (ON THE EXAMPLE OF THE EU COUNTRIES). Baltic Journal of Economic Studies, 8(2), 59-67. https://doi.org/10.30525/2256-0742/2022-8-2-59-67
Article views: 151 | PDF Downloads: 58

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Keywords

cluster analysis, creative economy, cultural and creative industries, sustainable development

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