Work in Progress
Consumer Casualties: Political Boycotts and International Disputes
(with Panle Jia Barwick, Shanjun Li, and Jeremy Wallace) forthcoming, Journal of East Asian Studies
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 reveal information about resolve and help avoid more costly forms of conflict. We demonstrate that the consumer boycott that arose amid tensions between China and Japan over a territorial dispute in 2012 had significant and persistent effects, especially in cities that witnessed anti-Japanese street demonstrations. Using administrative data on every car registration in China from 2009 to 2015, we find that the market share of Japanese automobile brands dropped substantially while Chinese and American brands benefited, with effects lasting several years. Our analysis provides concrete evidence of the short- and long-term impact of international tensions on economic activities.
(with Panle Jia Barwick, Shanjun Li, and Jeremy Wallace) forthcoming, Journal of East Asian Studies
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 reveal information about resolve and help avoid more costly forms of conflict. We demonstrate that the consumer boycott that arose amid tensions between China and Japan over a territorial dispute in 2012 had significant and persistent effects, especially in cities that witnessed anti-Japanese street demonstrations. Using administrative data on every car registration in China from 2009 to 2015, we find that the market share of Japanese automobile brands dropped substantially while Chinese and American brands benefited, with effects lasting several years. Our analysis provides concrete evidence of the short- and long-term impact of international tensions on economic activities.