Tim Harford has a few interesting economic examples to look at from the world of music:
Lesson two is about globalisation. A new article in The Economic Journal from Fernando Ferreira and Joel Waldfogel asks whether in a world of MTV and YouTube, national musical cultures are being crushed by American imports. Ferreira and Waldfogel have assembled more than a million data points covering chart hits in 22 countries, in some cases going back to 1960. In practice this covers pretty much the entire global music market, and the data are used to estimate the value of music sales.
At first glance, worries about the cultural dominance of the US seem justified: US artists are responsible for 60 per cent of world music sales. But US artists were responsible for 80 per cent of world music sales in the early 1960s before dramatically losing market share to the British. (We are now, alas, in sharp decline.)
In the early 1980s, less than 50 per cent of music sales were by domestic artists — that is, French artists selling in France, or Brazilian artists selling in Brazil. By 2007 that figure was around two-thirds. Domestically produced music is having a renaissance — proof that globalisation has more complex effects than we tend to assume.
