On the performance of creative industries: Evidence from Mexican metropolitan areas

This paper evaluates the performance of creative industries in 56 Mexican metropolitan areas over the period 1998-2013. Derived from Florida's 3T theory, determinants of inefficiency are examined by focusing on metropolitan area-related variables. The analysis yields several interesting findings. First, there is a marked heterogeneity in performance, especially within the arts creative sector. Second, there is relatively little robust evidence that inefficiency can be reduced by increments in public investment (technology), "creative students" (talent) or cultural opportunity (tolerance). Thereby the role of local governments developing and implementing differentiated policy strategies could contribute to increase the efficiency of the creative sector.