The development of regional handicraft industries represents a strategic driver for strengthening the creative economy, particularly in emerging markets where cultural heritage and artisanal skills hold significant economic potential. This study proposes an econometric framework to assess the impact of handicraft sector development on creative economy efficiency at the regional level. Using panel data from selected regions, the research incorporates indicators such as handicraft production volume, employment in craft-related activities, innovation intensity, market access, and digital commercialization. The model applies fixed-effects and instrumental variable techniques to estimate the causal relationship between handicraft sector growth and creative economy performance, measured through value added, export capacity, and enterprise productivity. The findings demonstrate that investment in handicraft clusters, improved access to creative markets, and the digitalization of craft-based value chains significantly enhance creative economy efficiency. The study highlights policy implications for regional governments, emphasizing targeted financial support, training programs, and infrastructure to strengthen creative industries. Overall, the research provides a data-driven basis for integrating handicraft development into regional economic planning and creative economy strategies.

Creative economy, regional handicrafts, econometric modeling

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