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Commercial Casualties: Political Boycotts and International Disputes.
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- Author(s): Weiss, Jessica Chen; Barwick, Panle Jia; Li, Shanjun; Wallace, Jeremy L.
- Source:
Journal of East Asian Studies; Nov2023, Vol. 23 Issue 3, p387-410, 24p- Subject Terms:
- Source:
- Additional Information
- Abstract: We explore whether international disputes harm commerce by galvanizing consumer boycotts of foreign products. Boycotts increase the social penalty of owning goods associated with a foreign adversary, offsetting individual incentives to free ride or discount the utility of participation. By harming international commerce, boycotts can help reveal information about resolve and avoid more costly forms of conflict. Using administrative data on the universe of new passenger vehicle registration records in China from 2009 to 2015, we demonstrate that consumer boycotts that arose amid tensions between China and Japan over a territorial dispute in 2012 had significant and persistent effects on vehicle sales, especially in cities that witnessed anti-Japanese street demonstrations. The market share of Japanese brands dropped substantially during and after the boycott with long lasting effects. Our analysis provides concrete evidence of the short- and long-term impacts of international tensions on economic activities. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Journal of East Asian Studies is the property of Cambridge University Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Abstract:
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