Journal of Rural Development
Consumer Boycotts as Implicit Tariffs: Evidence from the Japanese Beer Boycott in South Korea
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AuthorPark, Yunsun
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Publication Date2026.09.21
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Original
National consumer boycotts can have substantial effects on product demand and market outcomes. This study analyzes the impact of the consumer boycott of Japanese products in South Korea during the second half of 2019, with a specific focus on the demand for Japanese beer. We quantify this impact by converting the boycott-induced utility loss into an implicit tariff rate equivalent to a direct price increase. Using household-level food consumption panel data from the Rural Development Administration, we employ an event study framework and a mixed logit model that accounts for consumer heterogeneity. The empirical results indicate that, while overall demand for beer remained relatively stable, the choice probability of Japanese beer declined sharply from 10.6% before the boycott 1.4% after it, indicating a substantial shift toward substitute products. Notably, the median implicit tariff equivalent of the boycott was estimated at approximately 104%. These results suggest that the consumer-led boycott generated a utility loss equivalent to that associated with more than doubling the price of Japanese beer. Robustness checks further reveal a dynamic pattern in which the boycott’s impact intensified over time. This study demonstrates that consumer-driven boycotts can function as substantial non-price trade barriers, producing effects comparable to those of formal trade policy measures. By quantifying the economic repercussions of political conflict transmitted through consumer behavior in terms of an implicit tariff equivalent, the study provides insights relevant to both academic research and trade policy.
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