Repression and International Trade: An Analysis of Chinese Trade Volumes with Islamic Countries

28 Pages Posted: 29 Oct 2022

See all articles by Justin T Callais

Justin T Callais

University of Louisiana at Lafayette - Department of Economics and Finance

Gregory W. Caskey

The Citadel

Linan Peng

Depauw University - Department of Economics and Management

Date Written: October 2022

Abstract

In 2016, the world became aware of the Chinese Communist Party’s repressive campaign against the Muslim Uyghur populace of China’s far west Xinjiang Uyghur Autonomous Region, under which upwards of one million Uyghurs have been detained in reeducation and forced labor camps. This paper investigates the extent to which a country’s religious affiliation plays a role in affecting trade volumes with regimes abroad implementing repressive policies against members of their own religion. Using international trade data from 2010-2019, we employ matching models to estimate the effect of China’s repressive domestic policies on trade volumes with Islamic countries, utilizing countries with a majority Muslim populace as our baseline treatment group. Controlling for other measures of economic activity, our baseline post-treatment effects on Chinese trade volumes with Islamic countries reveal some blowback against China in the form of reduced exports (as a percentage of GDP). The baseline results reveal little with respect to imports or foreign direct investment. However, we find even stronger results for richer Islamic countries for both exports and imports.

Keywords: China, International Trade, Xinjiang, Uyghurs, Religion, Culture, Repression

JEL Classification: F14, Z12, F63

Suggested Citation

Callais, Justin and Caskey, Gregory W. and Peng, Linan, Repression and International Trade: An Analysis of Chinese Trade Volumes with Islamic Countries (October 2022). Available at SSRN: https://ssrn.com/abstract=4261062 or http://dx.doi.org/10.2139/ssrn.4261062

Justin Callais

University of Louisiana at Lafayette - Department of Economics and Finance ( email )

Lafayette, LA 70504
United States

Gregory W. Caskey (Contact Author)

The Citadel ( email )

171 Moultrie St.
Charleston, SC 29409
United States

HOME PAGE: http://www.gregcaskey.com

Linan Peng

Depauw University - Department of Economics and Management ( email )

Greencastle, IN 46135
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
42
Abstract Views
305
PlumX Metrics