Do Markets Overcome Repugnance? Muslim Trade Response to Anti-Muhammad Cartoons

36 Pages Posted: 26 Mar 2020

See all articles by Daniel L. Chen

Daniel L. Chen

Directeur de Recherche, Centre National de la Recherche Scientifique, Toulouse School of Economics, Institute for Advanced Study in Toulouse, University of Toulouse Capitole, Toulouse, France

Date Written: January 20, 2020

Abstract

What is the effect of religious beliefs on economic choices? And in light of this effect, what
is the cost of free speech? After Danish newspapers published Anti-Muhammad cartoons, the religious status of trade with Denmark changed exogenously in Muslim countries. Exports from Denmark to Muslim countries decreased by 23%, while close substitute countries like Finland gained export share. Final goods were more affected than intermediate goods as were more religious Muslim countries. Denmark did not shift exports to other countries, but trade quantity rebounded in 20 months. Notably, Muslim exports to Denmark were unaffected, consistent with money overcoming repugnance.

Keywords: Free Speech, Trust, Conflict, Backlash, Markets, Trade, Culture

JEL Classification: K0, Z1

Suggested Citation

Chen, Daniel L., Do Markets Overcome Repugnance? Muslim Trade Response to Anti-Muhammad Cartoons (January 20, 2020). Available at SSRN: https://ssrn.com/abstract=3546724 or http://dx.doi.org/10.2139/ssrn.3546724

Daniel L. Chen (Contact Author)

Directeur de Recherche, Centre National de la Recherche Scientifique, Toulouse School of Economics, Institute for Advanced Study in Toulouse, University of Toulouse Capitole, Toulouse, France ( email )

Toulouse School of Economics
1, Esplanade de l'Université
Toulouse, 31080
France

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