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International trade, religion, and political freedom: an empirical investigation

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  • Rock-Antoine Mehanna

Abstract

This paper explores the impact of religion (Islam), culture, and political freedom on bilateral trade flows by employing an augmented version of the gravity model. A stratified global sample of thirty-three countries for the period 1996-99 is selected. Unlike past studies that used gravity models to estimate "separately" the impact of religion, culture, or language on trade in a categorised framework such as the Organization of Islamic Countries, this study investigates the effects of religion, culture, and political freedom in one model and within a global framework. After controlling for oil-exporting countries and regional trade arrangements, findings reveal that, on average, Muslim majority countries trade less than their Christian, Buddhist, or other counterparts. Results also reveal that countries with more political freedom and English language affiliation (a proxy for one aspect of culture) tend to trade more than the model predicts.

Suggested Citation

  • Rock-Antoine Mehanna, 2003. "International trade, religion, and political freedom: an empirical investigation," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 5(2), pages 284-296.
    • Handle: RePEc:ids:gbusec:v:5:y:2003:i:2:p:284-296
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    Citations

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    Cited by:

    1. Johan Fourie & Jaume Rosselló & Maria Santana-Gallego, 2015. "Religion, Religious Diversity and Tourism," Kyklos, Wiley Blackwell, vol. 68(1), pages 51-64, February.
    2. Messner, Wolfgang, 2024. "Distance is the spice, but not the whole enchilada: Country-pair psychic distance stimuli and country fixed effects in a deep learning implementation of the trade flow model," International Business Review, Elsevier, vol. 33(1).
    3. Jaimin Lee & Seong-Hoon Cho, 2017. "Free trade agreement and transport service trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1494-1512, July.
    4. Jens K. Perret, 2014. "Religion, Growth and Innovation in Contemporary Russia," Schumpeter Discussion Papers SDP14006, Universitätsbibliothek Wuppertal, University Library.
    5. Nashwan M. A. Saif & Jianping Ruan & Bojan Obrenovic, 2021. "Sustaining Trade during COVID-19 Pandemic: Establishing a Conceptual Model Including COVID-19 Impact," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    6. Yaron Zelekha & Gil Avnimelech & Eyal Sharabi, 2014. "Religious institutions and entrepreneurship," Small Business Economics, Springer, vol. 42(4), pages 747-767, April.

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