On the Influence of World Religions on International Trade

Abstract

As the world economy is integrating, trade between countries is growing rapidly. The exchange of goods not only has an economic, but also a cultural dimension. This paper investigates the possible ways that religion influences international trade patterns. It studies the view of the five world religions, namely Hinduism, Judaism, Buddhism, Christianity, and Islam, on economic activity, and trade in particular. Analyzing empirically trade flows between 151 countries, the paper finds an impact of religion on trade. Furthermore, the results indicate that religious openness boosts trade performance of countries. Given these results, the paper derives several policy recommendations.1