The Role of Taiwan's Industrial Diversity In Regional Employment Growth - A Comparative Study on Digital Economy Industry and Cultural Innovation Industry

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Urban-regional and national economies are more vulnerable to external events and turbulence, such as the impact of the 2008 financial crisis, resulting in a global economic downturn. Recently, understanding the regional (un)related variety is central to create new regional industrial structure, such as digital industry sector and cultural creative industry sector. This causality has been argued and emphasized in evolutionary economic geography, but empirical analysis in the causal influence of related variety on regional employment growth remain less examined in Asian cities. This paper aims to examine the impact of related and non-related variety on employment growth of digital economy industry (DEI) and on cultural and creative industries (CCI) in Taiwan. This paper use spatial regression and spatial lag model analysis to examine this issue through comparing 350 samples of two different industries (DEI and CCI) under the level of towns and cities in Taiwan during 2001 to 2011. Main data comes from Industrial and Commercial Survey in Taiwan. The empirical result shows that related diversity will increase employment growth, while non-related diversity will reduce unemployment growth. And this result will become more significant as the degree of urbanization increases. In addition, digital economy industry are more significant than cultural and creative industries. This research contribution can provide more accurate data analysis for regional economic planning or labor market policies.
Diversity analysis, Digital Economy Industry, cultural and creative industries, Employment growth