Relationships Between The Creative Industries In China And Economic Growth Based On Romer Model

Creative industry is the sector of the economy which is usually defined as all of its products are in the scope of protection of the Property Act. Meanwhile creative industries have been developing rapidly in the developed countries and regions, and their size and the magnitude of the scale of development has been a significant indicator of the level of national or regional development. According to UNESCO statistics, creative industries have the whole world the proportion of GDP has reached about11%. And creative industries create about$22billion every day in the world. In this context, many scholars have been researching the creative industries in China. However, these papers of creative industries most discussed advantages, strategies and problems of the development of creative industries, few studies related to basic principles. Therefore, it is necessary to modeling of creative industries by the framework of modern economics.This paper first reviews the endogenous growth theory and the creative economy theory. Secondly, we discussed the parameters on the creative economy in economic growth from Romer model. Then the paper further to the micro level, combining the theory of imperfect competition elaborated on the economics meaning of creative industries. Finally, according to the mentioned model, we selected R&D spending as the proxy variable of creative stock, discussed the relationship between R&D investment and economic growth by cointegration theory. Empirical analysis shows that R&D investment in research and development and economic growth has a strong correlation. Even though research and development investment and economic growth are non-stable, they constitute a long-term equilibrium relationship in the long run. However, R&D investment is sufficient but non-essential condition of China’s economic growth that the actual research and development investment in the whole of society is the reason of real GDP growth, but real GDP growth does not constitute the actual reason of investment in research and development. According to the research results, we propose some suggestions on the development of the creative industries.