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Trade war, national sentiment and consumption substitution of cultural products: evidence from China’s film market

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Listed:
  • Yan Ren

    (Jinan University)

  • Caixia Zong

    (Jinan University)

  • Xiaoling Zhan

    (Jinan University)

Abstract

The causal relationship between the US–China trade war and consumption substitution of domestic films for American films in China is examined in this study using the difference-in-difference model. The daily screening film data in China’s 33 major cities in 2018 are employed. The results suggest that after the US–China trade war, the average attendance rate of foreign and American films has declined by 24.75% and 19.11%, respectively, compared with domestic films. As indicated by the above-mentioned finding, the trade war has led to a shift in the consumption of US films. The consumption substitution effect weakens on holidays for specific film types. People in cities exhibiting a higher economic and trade development level and a larger share of the tertiary industry are more inclined to purchase foreign cultural products. Accordingly, the negative effect of the trade war on American films is offset to some extent. As revealed by the result of this study, the negative effects are reduced with time.

Suggested Citation

  • Yan Ren & Caixia Zong & Xiaoling Zhan, 2024. "Trade war, national sentiment and consumption substitution of cultural products: evidence from China’s film market," Empirical Economics, Springer, vol. 66(2), pages 503-538, February.
    • Handle: RePEc:spr:empeco:v:66:y:2024:i:2:d:10.1007_s00181-023-02467-x
    DOI: 10.1007/s00181-023-02467-x
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    More about this item

    Keywords

    Trade war; Consumption substitution; Film; Political conflict;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • 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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