“The awards increase the production of movies through productivity, ie, workers and companies involved in the film are more productive and increasing efficiency. By contrast, we found no effect of subsidies on those products “, explains to SINC Henry Aray, coauthor of the study and researcher at the University of Granada.
In the opinion of the investigator and from these results, published in the journal Applied Economics Letters, “in case there are subsidies, they should be at the awards, meaning that companies compete to win grants, and create another scale for those starting in the film industry. ”
According to the data, with the same capital and labor occurs more if there are more prizes, while subsidies have no effect, either positive or negative, on productivity, “understood as efficiency.”
The grants can positively affect recruitment, that is, the more money comes more employment subsidies. “But we are interested in measuring their effect on productivity and efficiency in the film industry, says Araya.
To do this the researchers split the information published annually by the Ministry of Culture Spanish (MCU) on film production, grants, awards, number of companies engaged in film production and number of workers from 2002 to 2007.
In addition to regional estimates of the MCU data bases, the researchers used the price index for recreation and culture on the Consumer Price Index (CPI) of the National Statistics Institute (INE).
“We believe the film industry in terms of the variables of capital and labor, that is, the resources the company uses to make a feature, and include the variables of grants and awards,” describes Aray.
95% of Spanish cinema in seven communities
From these data the experts chose communities with production in all years. “We chose only those regions, so that the sample was homogeneous. Overall, Andalusia, Catalonia, Galicia, Madrid, Navarra, Basque Country and Valencia represent over 95% of film production throughout the country, “says the researcher.
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