French Wine and the U.S. Boycott of 2003: Does Politics Really Affect Commerce?
In early 2003, France actively tried to thwart the plans of the Bush administration to build international support for a war to depose Iraqi ruler Saddam Hussein. In response, calls in the United States for a boycott of French products, wine in particular, rebounded through all forms of media. In the spring of 2003, French business people even reported that the boycott calls were hurting their U.S. sales. Using a dataset of sales of nearly 4,700 individual wine brands, we show that there actually was no boycott effect. Rather, sales of French wine dipped for two reasons. First, they experience a cyclical peak at holiday time, from November through early January, and the boycott was called during the February to May period. Second, sales of French wine have been in a secular decline in the United States. Sales in February through May 2003 merely stayed on trend. We contrast our results with other recent work that has found evidence of a boycott effect but that omits the holiday effect from several specifications. French wine producers may be having economic problems, but it is not because of their government's foreign policy.
|Date of creation:||Jul 2007|
|Publication status:||published as Journal of Wine Economics / Volume 2 / Issue 01 / Spring 2007 pp 55-74 Copyright © American Association of Wine Economists 2007 DOI: http://dx.doi.org/10.1017/S1931436100000298 (About DOI), Published online: 08 June 2012|
|Note:||ITI LS POL|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bentzen, Jan & Smith, Valdemar, 2001.
"Did the French Nuclear Tests under the Muroroa Atoll Affect the Export of French Wine to Denmark?,"
01-9, University of Aarhus, Aarhus School of Business, Department of Economics.
- Bentzen, J. & Smith, V., 2001. "Did the French Nuclear Tests under the Muroroa Atoll Affect the Export of French Wine to Denmark?," Papers 01-9, Aarhus School of Business - Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:13258. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.