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The impact of deregulation on the movie box office after Taiwan’s entry into the WTO: the difference-in-differences estimation

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  • Wen-jhan Jane
  • Wei-peng Chen
  • Yuan-lin Hsu

Abstract

This article estimates the impact of Taiwan’s Entry into the WTO on the movie box office. A sample of 2392 box office movies for the period 2002–2010 was examined by using difference-in-differences (DiD) models. The impact of Taiwan’s entry into the WTO on the movie box office was found to be negative by at least 1.83 million USD per year. Contrary to the normal perception of a preference for foreign (Hollywood) movies, the evidence based on a short-run analysis shows that Taiwanese preferred local movies. Compared to foreign movies, a local movie’s box office receipts were on average 2.03–2.41 % higher, ceteris paribus. The evidence corresponds to the discussion of the cultural premium. Copyright Eurasia Business and Economics Society 2015

Suggested Citation

  • Wen-jhan Jane & Wei-peng Chen & Yuan-lin Hsu, 2015. "The impact of deregulation on the movie box office after Taiwan’s entry into the WTO: the difference-in-differences estimation," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 289-308, December.
    • Handle: RePEc:spr:eurasi:v:5:y:2015:i:2:p:289-308
    DOI: 10.1007/s40821-015-0025-1
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    More about this item

    Keywords

    Deregulation of foreign movies; Difference-in-differences estimation; Movie box office; World Trade Organization (WTO); C31; L51; Z11;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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