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Motion Pictures Industry: Economies of Scale and Trade

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  • A. Marvasti

Abstract

Recent economic theories find industrial structure to be an important determinant of the pattern of trade. In the motion picture industry, economies of scale and imperfect competition, in addition to cultural sovereignty, are conditions sometimes used to justify protectionist policies. This paper examines the significance of the capital-labor ratio, VCRs, market share, tariffs, domestic market size, taste similarities, stars and domestically popular films on international trade in the industry. The results indicate that stars and blockbusters in the domestic market do not seem to influence consumption of films overseas, however, external economies of scale are present in the industry, tariffs are effective trade barriers in the industry, and VCRs increase the chances of piracy.

Suggested Citation

  • A. Marvasti, 2000. "Motion Pictures Industry: Economies of Scale and Trade," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 7(1), pages 99-114.
    • Handle: RePEc:taf:ijecbs:v:7:y:2000:i:1:p:99-114
    DOI: 10.1080/13571510084087
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    References listed on IDEAS

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    Cited by:

    1. Georgios Alaveras & Estrella Gomez-Herrera & Bertin Martens, 2018. "Cross-border circulation of films and cultural diversity in the EU," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(4), pages 645-676, November.
    2. Giovanni B. Ramello, 2003. "Copyright and antitrust issues," Chapters, in: Wendy J. Gordon & Richard Watt (ed.), The Economics of Copyright, chapter 7, pages 118-147, Edward Elgar Publishing.
    3. Giovanni B. Ramello, 2005. "Pelle sub agnina latitat mens saepe lupina: copyright in the marketplace," Chapters, in: Alain Marciano & Jean-Michel Josselin (ed.), Law and the State, chapter 12, Edward Elgar Publishing.
    4. Darlene Chisholm & Víctor Fernández-Blanco & S. Abraham Ravid & W. David Walls, 2015. "Economics of motion pictures: the state of the art," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(1), pages 1-13, February.
    5. Amanda S. King & John T. King & Michael Reksulak, 2017. "Signaling for access to high-demand markets: evidence from the US motion picture industry," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(4), pages 441-465, November.

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