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Political Conflict and Angry Consumers: Evaluating the Regional Impacts of a Consumer Boycott on Travel Services Trade

Author

Listed:
  • JaeBin Ahn

    (Seoul National University)

  • Theresa M. Greaney

    (University of Hawaii)

  • Kozo Kiyota

    (Keio Economic Observatory, Keio University)

Abstract
Political conflict between nations sometimes leads to consumer boycotts. We examine the regional impacts of bilateral boycott activity by investigating the 2019 Korean consumer boycott of travel to Japan. Employing triple- and double-differences designs, we find that the impact of the boycott is large and regionally heterogeneous. Japanese prefectures with high (i.e., 75th percentile) pre-boycott dependency on visitors from Korea suffer bilateral export losses of 56.9 to 60.9 percent and aggregate export losses of 10.5 to 13.3 percent. Prefectures with low (i.e., 25th percentile) Korea dependency experience bilateral losses of 47.8 to 49.7 percent and aggregate losses of 3.3 to 4.2 percent.

Suggested Citation

  • JaeBin Ahn & Theresa M. Greaney & Kozo Kiyota, 2022. "Political Conflict and Angry Consumers: Evaluating the Regional Impacts of a Consumer Boycott on Travel Services Trade," Keio-IES Discussion Paper Series 2022-010, Institute for Economics Studies, Keio University.
  • Handle: RePEc:keo:dpaper:2022-010
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    File URL: https://ies.keio.ac.jp/upload/DP2022-010_EN.pdf
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    References listed on IDEAS

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    Cited by:

    1. Shi, Wei & Wei, Jingran, 2023. "In the crossfire: Multinational companies and consumer boycotts," China Economic Review, Elsevier, vol. 77(C).

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    More about this item

    Keywords

    Political conflict; Consumer boycott; Travel services trade; Local market; Regional impact;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism

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