Political conflict and angry consumers: Evaluating the regional impacts of a consumer boycott on travel services trade

Jae Bin Ahn, Theresa M. Greaney, Kozo Kiyota

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish
Article number101216
JournalJournal of The Japanese and International Economies
Volume65
DOIs
Publication statusPublished - 2022 Sep

Keywords

  • Consumer boycott
  • Local market
  • Political conflict
  • Regional impact
  • Travel services trade

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

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