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How beliefs influence behaviour: Confucianism and innovation in China
Author(s) -
Feng Xunan,
Jin Zhi,
Johansson Anders C.
Publication year - 2021
Publication title -
economics of transition and institutional change
Language(s) - English
Resource type - Journals
eISSN - 2577-6983
pISSN - 2577-6975
DOI - 10.1111/ecot.12277
Subject(s) - china , affect (linguistics) , psychology , state (computer science) , social psychology , political science , mathematics , communication , law , algorithm
Previous studies have analysed how religious beliefs may affect economic activity. We extend this literature by examining how Confucianism is linked to innovation activity at the firm level in China. We analyse the relationship between Confucianism and several proxies for input and outputs of innovation activities. Our results show that Confucianism is significantly related to lower levels of innovation activity regardless of which measure for firm‐level innovation we use. We also find that the nature of ultimate ownership influences this relationship, with innovation among state‐controlled firms being significantly more affected by Confucianism. This study thus adds to the understanding of how traditional belief systems influence behaviour among economic actors.