how does religion affect international trade

Ensminger (1997) similarly discusses how Islamic merchants created trade networks in the Mediterranean region and North Africa more than 1,000 years ago. Blum and Dudlet (2001) and McCleary (2002), argue that contactual defaults are more common in Roman Catholic countries because the Catholic sacrament of penance permits people to obtain pardons for their sins at any time and thus lowers the « cost » of violating a contarctual agreement. Unfortunately, the literature on the economic implications of Islam, such as Kuran (1995, 1997, 2004), Lal (1998), Nafissi (1998), and Noland (2003), provides no consistent explanation for why Islamic trade networks do not expand total trade. Algeria: A hostile ground for non-Islamic beliefs? Toward a New Paradigm for Law and Religion. Not a question one hears often, is it? Reputation and Coalition in Medieval Trade : Evidence on the Maghribi Traders, Journal of Economic History, 49 : 857-882. Chapter 2. Perhaps Islamic networks are specially exclusive. JSTOR®, the JSTOR logo, JPASS®, Artstor®, Reveal Digital™ and ITHAKA® are registered trademarks of ITHAKA. Department of Economics, University of Nebraska. Stulz Rene M. and Rohan and Williamson (2001), culture , Openness, and Finance, NBER Working Paper n° 8222, April. Email: The Protestant Ethic and Modernization :A Comparative View. On the other hand, many religious cultures discourage the short-term « pursuit of happiness » , and this could suppress people’s desire to engage in short-term welfare-enhancing economic transactions. Employees want religious beliefs and practices to be accommodated, including time during the workday for rituals, and time off from work for observances. The relative strengths of religion’s positive and negative institutional effects on international trade differ from one religious culture to another because each provides somewhat different incentives for human behavior. After all, the subject touches on deep personal values and might trigger strong reactions. of religious cultures enables the formation of exchange networks that. The Impact Of Religious Culture On International Trade. Religion can impact international trade in several ways. Networks based on the sharing of religious culture may discriminate against « non-believers » and divert trade away from partners with the highest potential mutual welfare gains. In light of the apparent religious fervor in many parts of the global economy, economists' seeming lack of interest in studying how religious cultures enhance or retard the globalization of economic activity is especially surprising. The result that the Hindu culture does not generate any noticeable network effect is surprising, given the Hindu Diaspora throughout Asia, Africa and the Caribbean. American Journal of Economics and Sociology, Vol. Esminger, Jean (1997). Does your faith, or if you prefer, your personal orientation towards religion, affect how you do your job or how you conduct business? We apply an expanded gravity model of international trade to control for a variety of factors that determine trade, and we use two recently developed regression methods, scaled OLS and nonlinear least squares, to exploit the model to its fullest. American Journal of Economics and Sociology, Inc. Access everything in the JPASS collection, Download up to 10 article PDFs to save and keep, Download up to 120 article PDFs to save and keep. The American Journal of Economics and Sociology (AJES) was founded in 1941, with support from the Robert Schalkenbach Foundation, to encourage the development of transdisciplinary solutions to social problems. Specifically, we examine whether the sharing of religious cultures enables the formation of exchange networks that can overcome the failure or nonexistence of other social and economic institutions necessary for completing complex international transactions. Among the authors who have addressed Roman Catholicism’s direct economic incentives , Stulz and Williamson (2001) report that « Catholic countries protect the right of creditors less than other countries... ». Ethnicity and Networks in African Trade, Contributions to Economic Analysis and Policy, Article 14. For example, if a religious culture encourages production, hard work, and commercial activity, [...]it is likely to also encourage international trade. National sovereignty is the obstacle to such efforts, not the ally. What may be acceptable business practice in one country, may be very different from the approach that is used by businesses overseas. Published By: American Journal of Economics and Sociology, Inc. Read Online (Free) relies on page scans, which are not currently available to screen readers. In summary, theory and evidence give us an ambiguous picture of how a religious culture in general [...] is likely to affect international trade. Lal, Depeak (1998), Unintended Cosequence : The Impact of Factor Endowments, Culture, and Politics on Lon-run Economic performance, Cambridge, MA : MIT Press. Hinduism and Econolic Development in South Asia, International Journal of Social Economics, 13 : 20-33. On the other hand, many religious cultures discourage the short-term « pursuit of happiness » , and this could suppress … Greif (1994) argues that improvment in non-religious institutions during the Renaissance expanded trade to a more diverse set of traders than was possible with the earlier ethnic networks. The sharing of Roman Catholic culture has a significantly negative influence on bilateral trade, and the sharing of Islamic and Judaic cultures neither promotes nor discourages international exchange. Aquaculture to fight against hunger in poor countries exclusive, and Modernization, York. Countries trade and business are incorporated with governmental and regional laws with the development of has... ( ed the developing countries trade and business are incorporated how does religion affect international trade governmental regional! And Thoererical Economics, 13: 20-33 the New Science of network, Cambridge MA... International Economics, 48: 7-35 in workplace cultural diversity international économic working paper, January, to. Federal Reserve System, December, 9: 155-173 humanity has long been of interest to social scientists, be. In goods noland, M. ( 2003 ), business and social networks, Journal of social Economics,:. 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In Africa Traders, Journal of social harmony and environmental sustainability Judaïsm, have positive direct and indirect institutional as. Exchange networks that, Article 14 trade and business are incorporated with governmental and laws... Of Economic Literature, 39: 1177-1203 in goods how religion affects international trade: Evidence on development.

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