Esports Industry, Video Game Industry and Economic Growth: An Empirical Research in China

18 Pages Posted: 12 May 2022 Last revised: 3 Apr 2023

See all articles by Dongping Bai

Dongping Bai

Chinese Academy of Sciences (CAS) - Academy of Mathematics and Systems Science (AMSS); Chinese Academy of Sciences (CAS) - School of Mathematical Sciences; Northeast Normal University - KLASMOE & School of Mathematics and Statistics

Longyin Chen

Northeast Normal University - KLASMOE & School of Mathematics and Statistics

Zhaoyang Shang

Northeast Normal University

Yunhao Wang

Northeast Normal University - KLASMOE & School of Mathematics and Statistics

Guoyu Guan

Northeast Normal University

Date Written: April 3, 2022

Abstract

The video game industry is a newly emerged catalyst for economic growth, and e-sports industry, as a sub-industry, plays a pivotal role in stimulating the video game industry. To investigate the mechanism and the quantitative relationship among them, we propose a two-stage transmission path “E-sports Industry-Video Game Industry-Economic Growth”, with the video game industry as the intermediary. Vector autoregression-vector error correction (VAR-VEC) and cointegration regression models are employed for the analysis using empirical data from China. The empirical results show that for every 1% increase in the actual sales revenue of the e-sports industry (ASRE), the actual sales revenue of the video game industry (ASRG) will increase by 0.473% and the gross domestic product (GDP) by 0.076%. Finally, we put forward policy proposals and suggestions on encouraging the development of the e-sports industry and the video game industry.

Keywords: esports industry, video game industry, economic growth, VAR-VEC, cointegrating regression

JEL Classification: C32, C51, L83, L86, O47

Suggested Citation

Bai, Dongping and Chen, Longyin and Shang, Zhaoyang and Wang, Yunhao and Guan, Guoyu, Esports Industry, Video Game Industry and Economic Growth: An Empirical Research in China (April 3, 2022). Available at SSRN: https://ssrn.com/abstract=4074000 or http://dx.doi.org/10.2139/ssrn.4074000

Dongping Bai

Chinese Academy of Sciences (CAS) - Academy of Mathematics and Systems Science (AMSS) ( email )

Beijing
China

Chinese Academy of Sciences (CAS) - School of Mathematical Sciences ( email )

Beijing
China

Northeast Normal University - KLASMOE & School of Mathematics and Statistics ( email )

Changchun
China

Longyin Chen

Northeast Normal University - KLASMOE & School of Mathematics and Statistics ( email )

Changchun
China

Zhaoyang Shang

Northeast Normal University ( email )

Changchun
China

Yunhao Wang (Contact Author)

Northeast Normal University - KLASMOE & School of Mathematics and Statistics ( email )

Changchun
China

Guoyu Guan

Northeast Normal University ( email )

Changchun
China

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