Esports Industry, Video Game Industry and Economic Growth: An Empirical Research in China
18 Pages Posted: 12 May 2022 Last revised: 3 Apr 2023
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: Suggested Citation