Cultural inflow effects on Japanese import demand for consumer products: importance of halo effects

Abstract

This study investigated the effects of cultural inflow on import demand. More specifically, this research explored whether foreign cultural products can cause halo effects on Japanese import of consumer products. Our findings suggest the presence of positive cultural halo effects on the Japanese import market for consumer products. Specifically, import of cultural products has significant positive effects on certain types of consumer products of the same country of origin and negative effects on products of different origin. Additionally, the effects of cultural inflow on import demand differ depending on the type of consumer products. These findings have important implications for countries that export consumer and cultural products.

Keywords:

• halo effect
• cultural inflow effect
• competitiveness
• import demand
• source differentiated
• country of origin

JEL Classifications:

• E21
• F14
• Z1

Acknowledgements

The authors thank the editor and anonymous reviewers for their helpful comments.

Note

Notes

1. For example, the price index of the electronic products (HScode: 8508, 8509, 8510, 8516) of USA is calculated as: where x = value ($), y = quantity (kg), i ∈ [8508, 8509, 8510, 8516].

Additional information

Funding

This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government [grant number NRF-2011-330-B00074].

Notes on contributors

Sang Hyeon Lee

Sang Hyeon Lee is a PhD candidate at the Department of Agricultural Economics in Texas A&M University. His special fields are agricultural and food marketing policy and international trade. His research focuses on the effectiveness of government policies or generic advertisement and promotion. His most recent publication is in the Korean Journal of Health Economics and Policy, 19 (3): 51–82.

Doo Bong Han

Doo Bong Han is a professor in the Department of Food and Resource Economics at Korea University. His research interests are focused on international food policy, agribusiness finance, and experimental and behavioural economics. He has published more than 90 refereed articles in several journals.

Rodolfo M. Nayga

Rodolfo M. Nayga, Jr., is a professor and Tyson-endowed chair in food policy economics in Department of Agricultural Economics and Agribusiness at University of Arkansas. He is also affiliated with the Department of Food and Resource Economics at Korea University and the Norwegian Agricultural Economics Research Institute. His research interests are focused on the economics of food policy and quality.