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How Beliefs Influence Behavior: Confucianism and Innovation in China

Author

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  • Feng, Xunan

    (Southwestern University of Finance and Economics)

  • Jin, Zhi

    (Southwestern University of Finance and Economics)

  • Johansson, Anders C.

    (Stockholm China Economic Research Institute)

Abstract

Previous studies have studied how religious beliefs may affect economic activity. We extend this literature by examining how Confucianism is linked to innovative activities at the firm level in China. We analyze the relationship between Confucianism and several proxies for inputs and outputs of innovative activities. Our results show that Confucianism is significantly related to lower levels of innovative activities regardless of which measure for firm-level innovation we use. We also find that type 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 behavior at the firm level.

Suggested Citation

  • Feng, Xunan & Jin, Zhi & Johansson, Anders C., 2017. "How Beliefs Influence Behavior: Confucianism and Innovation in China," Stockholm School of Economics Asia Working Paper Series 2017-46, Stockholm School of Economics, Stockholm China Economic Research Institute.
    • Handle: RePEc:hhs:hascer:2017-046
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    More about this item

    Keywords

    Confucianism; Beliefs; Religion; Innovation; R&D; Patents; China;
    All these keywords.

    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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