Work

Who bears the cost of nationalism? A spatial analysis on the unintended spillover effects of boycotts

Year: 2024

Type: article

Abstract: Politically motivated boycotts aim to harm the sales of goods associated with foreign rivals, but can also harm the domestic economy if the goods are domestically produced. This paper examines the unintended effects of the 2012 Chinese boycott of Japanese cars on China's automobile supply chain. By comparing changes in employment between auto parts and non‐parts industries located at various distances from Japanese joint ventures (JV), I find that auto parts manufacturers near the Japanese JVs experienced a 10%–17% reduction in employment after the boycott.

Source: Economic Inquiry

DOI: 10.1111/ecin.13254

Author: Huiyi Chen

Institution: James Madison University

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,400