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The Long-Term Effects of Protestant Activities in China

Author

Listed:
  • Yuyu Chen
  • Hui Wang
  • Se Yan
Abstract
Does culture, and in particular religion, exert an independent causal effect on long-term economic growth, or do culture and religion merely reflect the latter? We explore this issue by studying the case of Protestantism in China during the late nineteenth and early twentieth centuries. Combining county-level data on Protestant presence in 1920 and socioeconomic indicators in 2000, we find that the spread of Protestantism has generated significant positive effects in long-term economic growth, educational development, and health care outcomes. To better understand whether the relationship is causal, we exploit the fact that missionaries purposefully undertook disaster relief work to gain the trust of the local people. Thus, we use the frequency of historical disasters as an instrument for Protestant distribution. Our IV results confirm and enhance our OLS results. When we further investigate the transmission channels over the long historical period between 1920 and 2000, we find that although improvements in education and health care outcomes account for a sizable portion of the total effects of missionaries' past activities on today's economic outcomes, Protestant activities may have also contributed to long-term economic growth through other channels, such as through transformed social values. If so, then a significant amount of China's growth since 1978 is the result not just of sudden institutional changes but of human capital and social values acquired over a longer historical period.

Suggested Citation

  • Yuyu Chen & Hui Wang & Se Yan, 2014. "The Long-Term Effects of Protestant Activities in China," CEH Discussion Papers 025, Centre for Economic History, Research School of Economics, Australian National University.
    • Handle: RePEc:auu:hpaper:025
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    File URL: https://cbe.anu.edu.au/researchpapers/CEH/WP201404.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Gan Jin & Günther G. Schulze, 2024. "Historical Legacies and Urbanization: Evidence from Chinese Concessions," Discussion Paper Series 47 JEL Classification: N9, Department of International Economic Policy, University of Freiburg, revised Feb 2024.
    3. Hao Wang & Yuemei Ji & Qi Luo, 2020. "The Employment Effect of Inward FDI in China: What Do We Learn from the History?," CESifo Working Paper Series 8392, CESifo.
    4. Becker, Sascha O. & Pfaff, Steven & Rubin, Jared, 2016. "Causes and consequences of the Protestant Reformation," Explorations in Economic History, Elsevier, vol. 62(C), pages 1-25.
    5. Jin, Gan, 2018. "Circle of Fortune: The Long Term Impact of Western Customs Institutions in China," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181605, Verein für Socialpolitik / German Economic Association.
    6. Congdon Fors, Heather & Isaksson, Ann-Sofie & Lindskog, Annika, 2024. "Changing local customs: The long run impacts of Christian missions on female genital cutting in Africa," Journal of Development Economics, Elsevier, vol. 166(C).
    7. Dong, Baomin & Zhang, Yu, 2024. "Confucianism and science," Explorations in Economic History, Elsevier, vol. 91(C).
    8. Gan Jin, 2018. "Circle of Fortune: The Long Term Impact of Western Customs Institutions in China," Discussion Paper Series 37, Department of International Economic Policy, University of Freiburg, revised Jul 2018.
    9. Remi Jedwab & Felix Meier zu Selhausen & Alexander Moradi, 2022. "The economics of missionary expansion: evidence from Africa and implications for development," Journal of Economic Growth, Springer, vol. 27(2), pages 149-192, June.
    10. Yuchtman, Noam, 2017. "Teaching to the tests: An economic analysis of traditional and modern education in late imperial and republican China," Explorations in Economic History, Elsevier, vol. 63(C), pages 70-90.
    11. Gan Jin & Günther G. Schulze, 2024. "The Long-term Effect of Western Customs Institution on Firm Innovation in China," Discussion Paper Series 46 JEL Classification: N7, Department of International Economic Policy, University of Freiburg, revised Feb 2024.
    12. Wang, Jun & Ang, James B., 2024. "Epidemics, disease control, and China’s long-term development," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 93-112.
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    14. Jedwab, Remi & Meier zu Selhausen, Felix & Moradi, Alexander, 2021. "Christianization without economic development: Evidence from missions in Ghana," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 573-596.
    15. Congdon Fors, Heather & Isaksson, Ann-Sofie & Annika, Lindskog, 2023. "Changing local customs: Long-run impacts of the earliest campaigns against female genital cutting," Working Papers in Economics 831, University of Gothenburg, Department of Economics.
    16. Wen, Jinglei & Deng, Yujiao, 2023. "How does intellectual property protection contribute to the digital transformation of enterprises?," Finance Research Letters, Elsevier, vol. 58(PA).
    17. Sheremeta, Roman & Smith, Vernon, 2017. "The Impact of the Reformation on the Economic Development of Western Europe," MPRA Paper 87220, University Library of Munich, Germany.
    18. Long, Cheryl & Murrell, Peter & Yang, Li, 2019. "Memories of colonial law: The inheritance of human capital and the location of joint ventures in early-reform China," China Economic Review, Elsevier, vol. 58(C).
    19. Okoye, Dozie, 2021. "Things fall apart? Missions, institutions, and interpersonal trust," Journal of Development Economics, Elsevier, vol. 148(C).
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    21. Alpino,Matteo & Hammersmark,Eivind Moe, 2020. "The Role of Historical Christian Missions in the Location of World Bank Aid in Africa," Policy Research Working Paper Series 9146, The World Bank.

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    More about this item

    Keywords

    Protestantism; Economic Growth; Education; Health Care; China;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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