A Study on Agglomeration Effect of Beijing Cultural and Creative Industry

The 21st century is the age of knowledge and creative economy. As an emerging industry, the cultural and creative industry is developing vigorously, and becoming more and more important in regional economic development. Especially for China, which is now facing the most critical period of economic growth mode transformation, the development of cultural and creative industry would play an important role in its transition process, and must be given full attention. This paper mainly pays attention to the development and agglomeration of Beijing cultural and creative industry. Firstly, I would apply several widely-used indexes to measure and evaluate the agglomeration degree of Cultural and Creative Industry in Beijing and other developed cities in China. By comparison, it reveals that Beijing has great advantage in cultural and creative industry, due to its historical and cultural background and economic priority. Secondly, based on a generalized Cobb-Douglas production function, a random-coefficient regression model is set up. By estimating the model, the agglomeration effect of the cultural and creative industry is examined, and I find that clustering development can improve the input-output efficiency, especially the output elasticity of fixed asset input. In addition, this paper also confirms the significant role of human capital accumulation, financial support in science and education.