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Estimating the Institutional and Network Effects of Religious Cultures on International Trade

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  • Joshua J. Lewer
  • Hendrik Van den Berg

Abstract

As a social institution, religion directly influences economic behavior, including trade. Religious culture also impacts trade indirectly because it is part of a society's overall culture, which in turn influences many other formal and informal institutions that also directly influence economic activity. Finally, religious cultures support trade networks. Applying panel data for 84 countries for the years 1995-2000 to an augmented gravity model that distinguishes between the direct institutional, indirect institutional, and network effects of religious cultures, we find that only three of the world's eight major religious cultures directly stimulate international trade. However, the majority of the religious cultures seem to indirectly increase trade through their influence on societies' other institutions, and six of the eight major religions have network effects that increase trade. Copyright 2007 Blackwell Publishing Ltd..

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 60 (2007)
Issue (Month): 2 (05)
Pages: 255-277

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Handle: RePEc:bla:kyklos:v:60:y:2007:i:2:p:255-277

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962

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Cited by:
  1. Johan Fourie & Jaume Roselló & Maria Santana-gallego, 2014. "Religion, Religious Diversity and Tourism," Working Papers 09/2014, Stellenbosch University, Department of Economics.
  2. Jacques Melitz & Farid Toubal, 2012. "Native language, spoken language, translation and trade," Heriot-Watt University Economics Discussion Papers 1211, Department of Economics, School of Management and Languages, Heriot Watt University.
  3. repec:hal:wpaper:hal-00270475 is not listed on IDEAS
  4. M. Leroch & C. Reggiani & G. Rossini & E. Zucchelli, 2012. "Religious attitudes and home bias: theory and evidence from a pilot study," Working Papers wp811, Dipartimento Scienze Economiche, Universita' di Bologna.
  5. Kodila-Tedika, Oasis & Agbor, Julius, 2013. "Religious Diversity and Economic Development in Sub-Saharan Africa: So Far So Good," MPRA Paper 46305, University Library of Munich, Germany.
  6. Bala Ramasamy & Matthew C.H. Yeung, 2012. "Ethical distance and difference in Bilateral trade," Working Papers 11012, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
  7. Nicolas Sauter, 2009. "Talking Trade: Language Barriers in Intra-Canadian Commerce," FIW Working Paper series 023, FIW.

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