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Theatrical Feature Film Trade in the United States, Europe, and Japan Since the 1950s: An Empirical Study of the Home Market Effect

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  • Sang-Woo Lee
  • David Waterman

Abstract

This article reviews the test of a home market model of international trade in media products using a movie industry database covering 6 major countries (the United States, Japan, Germany, Italy, France, and the United Kingdom) over the 1950 to 2003 period. In support of the model, this study finds a consistently positive relation between domestic theater box-office market shares and various measures of domestic movie spending or domestic movie attendance, and negative relations between domestic movie spending and the market shares of imported American film products. Based on these results, declining domestic film production industries in Europe and Japan after about the 1970s, along with growing dominance of the world film market by the United States, is attributed to a relatively rapid growth of domestic consumer spending on movies in the United States.

Suggested Citation

  • Sang-Woo Lee & David Waterman, 2007. "Theatrical Feature Film Trade in the United States, Europe, and Japan Since the 1950s: An Empirical Study of the Home Market Effect," Journal of Media Economics, Taylor & Francis Journals, vol. 20(3), pages 167-188.
    • Handle: RePEc:taf:jmedec:v:20:y:2007:i:3:p:167-188
    DOI: 10.1080/08997760701290591
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    Cited by:

    1. Jane, Wen-Jhan, 2021. "Cultural distance in international films: An empirical investigation of a sample selection model," Journal of Economics and Business, Elsevier, vol. 113(C).
    2. Chu-Shore, Jesse, 2010. "Homogenization and Specialization Effects of International Trade: Are Cultural Goods Exceptional?," World Development, Elsevier, vol. 38(1), pages 37-47, January.

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