Measuring the export diversification of creative products’ basket and identifying its drivers: cross-country evidence

We measure the level of export diversification of creative products using Theil inequality and Herfindahl–Hirschman concentration indexes for 109 countries from 2000 to 2018. We also identify the drivers of export diversification by specifying a dynamic panel data model and employing the system-GMM and quasi-maximum likelihood estimators. Our findings indicate that accumulated productive capabilities, financial development, and structural changes have positive impacts on the diversification of creative products, while economic growth, trade openness, and FDI contribute to a country’s specialization. Our results highlight the need for countries to improve institutional quality, allocate funds to finance creative industries, and develop infrastructures to diversify creative products.