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How beliefs influence behaviour: Confucianism and innovation in China

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  • Xunan Feng
  • Zhi Jin
  • Anders C. Johansson

Abstract

Previous studies have analysed how religious beliefs may affect economic activity. We extend this literature by examining how Confucianism is linked to innovation activity at the firm level in China. We analyse the relationship between Confucianism and several proxies for input and outputs of innovation activities. Our results show that Confucianism is significantly related to lower levels of innovation activity regardless of which measure for firm‐level innovation we use. We also find that the nature of ultimate ownership influences this relationship, with innovation among state‐controlled firms being significantly more affected by Confucianism. This study thus adds to the understanding of how traditional belief systems influence behaviour among economic actors.

Suggested Citation

  • Xunan Feng & Zhi Jin & Anders C. Johansson, 2021. "How beliefs influence behaviour: Confucianism and innovation in China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(3), pages 501-525, July.
    • Handle: RePEc:wly:ectrin:v:29:y:2021:i:3:p:501-525
    DOI: 10.1111/ecot.12277
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    More about this item

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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