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Religious attitudes and home bias: theory and new evidence from primary data

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

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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File URL: http://www.socialsciences.manchester.ac.uk/medialibrary/economics/discussionpapers/EDP-1311.pdf
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Paper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 1311.

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Date of creation: 2013
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Handle: RePEc:man:sespap:1311
Contact details of provider: Postal: Manchester M13 9PL
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Web page: http://www.socialsciences.manchester.ac.uk/subjects/economics/

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