STRATEGIC FASHION INDUSTRY AND CITY ECONOMY: THE ROLE OF DESIGN ON FINANCIAL DYNAMICS

Abstract

This study developed three models based on time series analysis to evaluate the effects of the fashion industry on city economies. In the first model, the relationship between fashion industry size and city economic indicators was examined. The second and third models evaluated the effects of fashion events, investments and city infrastructure on economic growth. Data were collected between 2000 and 2023 and analyzed with STATA 17 software. Unit root tests and multiple linear dependency tests were performed for the variables used in the study and then autocorrelation and VIF tests were performed for appropriate model selection. Ridge Regression Model was used due to the multicollinearity problem in the first model. In the second and third models, Prais-Winston AR Model predictions were obtained. The findings reveal that the fashion industry has significant impacts on tourism revenue, gross national product and retail sales.