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

Yan Ren (), Caixia Zong () and Xiaoling Zhan ()
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Yan Ren: Jinan University
Caixia Zong: Jinan University
Xiaoling Zhan: Jinan University

Empirical Economics, 2024, vol. 66, issue 2, No 2, 503-538

Abstract: 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.

Keywords: Trade war; Consumption substitution; Film; Political conflict (search for similar items in EconPapers)
JEL-codes: D12 F14 F51 F52 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s00181-023-02467-x

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