The Korea Local Administration Review

This study examines the agglomeration effects of creative industry on localeconomic growth. We form the data-set of 25 autonomous districts in Seoulfrom 2004 to 2008, focusing on ‘the index of agglomeration density (employee/company) & cluster index’. It shows that the total size of creative industry inSeoul continues to grow, and new agglomerative areas(based on the industrycluster system) of creative industry are growing by degrees. Then, PCSE(panelcorrected standard error) regression model is conducted to analyze theagglomeration effect of creative industry on local economic growth. The resultsindicate that the level of agglomeration(A.D. & C.I.) have positive effects onproduction-based local economic growth, and on income-based in part(onlyC.I.). It suggests that local economic development policy should pay attention tonot only the agglomeration of creative industry, but the improvement ofprofessionalism in their regions, which would result in positive effect on localeconomic growth as well as local productivity through some external effect.
□ Keywords: creative industry, agglomeration, local economic growth