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Religious attitudes and home bias: theory and evidence from a pilot study

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  • Martin Leroch
  • Carlo Reggiani
  • Gianpaolo Rossini
  • Eugenio Zucchelli

Abstract

This paper examines the relationship between religion and home bias. We propose a simple theoretical framework that suggests that countries interacting via their representative individuals might show a certain degree of religion-driven international altruism that in turn affects trade. We test these predictions exploiting data from a survey on religious attitudes and individuals' preferences over consumption of home-produced versus foreign goods that we designed and carried out in 15 different countries. We find evidence that religious openness and home bias are negatively correlated. This appears to provide some support to the hypothesis that religious openness, through trust and altruism, may have a pro-trade effect.
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Suggested Citation

  • Martin Leroch & Carlo Reggiani & Gianpaolo Rossini & Eugenio Zucchelli, 2012. "Religious attitudes and home bias: theory and evidence from a pilot study," The School of Economics Discussion Paper Series 1206, Economics, The University of Manchester.
  • Handle: RePEc:man:sespap:1206
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    More about this item

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • F15 - International Economics - - Trade - - - Economic Integration

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