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Title: French Automobiles and the Chinese Boycotts of 2008: Politics Really Does Affect Commerce
Authors: Hu, Wei-Min;James Prieger;Hong, Can-Hui;Zhu, Dong-Ming
Contributors: 財政系
Keywords: boycott;boycotting;voluntary contributions to public goods;economics of nationalism;free riding;consumer ethnocentrism;Chinese automobile industry;vehicles;cars
Date: 2011.05
Issue Date: 2014-11-04 18:11:00 (UTC+8)
Abstract: We explore the economic impact of boycotts of French automobiles in China during the time of the 2008 Beijing Olympics. Conditions were favorable for a boycott, enabling Chinese consumers to overcome the collective action problems that can prevent boycott success and other voluntary contributions to public goods. We use brand and model level data in a difference-in-difference specification to investigate the boycotts’ effects on sales. A robust pattern of large impacts emerges: sales of French automobile brands fell 25-33 percent or more. Consumers substituted mostly toward Chinese and other Asian cars. The sales of the French models did not experience similar relative sales declines in countries other than China—triple-difference estimates point toward even larger relative loss of market share in China. Our results provide evidence that commerce can be used as an effective political weapon.
Relation: BE Journal of Economic Analysis & Policy, 11(1), 1935-1682
Data Type: article
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