Academic Journal
Capitalism and Confucianism: Was Weber Right?
| Title: | Capitalism and Confucianism: Was Weber Right? |
|---|---|
| Authors: | Dong, Baomin (AUTHOR) |
| Source: | Journal of Economic Issues (Taylor & Francis Ltd). Mar2023, Vol. 57 Issue 1, p103-122. 20p. 4 Charts, 3 Maps. |
| Abstract: | Max Weber claimed that capitalism failed to develop in imperial China due to the incompatibility between Confucianism and modern capitalism. To examine Weber's China thesis, I investigate the causal relationship between capital and the degree of Confucian influence in Chinese localities. Since formal banking sector and civil law were both absent in imperial China, I use county level data on money business and historical keju statistics to represent capital formation and local Confucian influence respectively. In particular, I use 1914 county level numbers of money business (Qianye) as historical local intensity of informal finance, to regress contemporary county level amount of capital of micro-credit companies to examine the persistence of informal finance. Using the number of issues discussed by local commercial chambers to instrument historical finance, I find that the persistence is significant and strong. I also investigate if Confucianism determined informal institution. To implement, I use the numbers of Jinshi as a proxy of Confucian tradition to instrument dispute resolution institution, and find Confucian influence is conducive to the development of informal institution, which in turn, facilitated the development of informal finance. [ABSTRACT FROM AUTHOR] |
| Subject Terms: | *Banking industry, *Local government, *Capitalism, *Capital movements, *Capital, Confucianism, Dispute resolution, Civil law |
| Geographic Terms: | China |
| People: | Weber, Max, 1864-1920 |
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| ISSN: | 00213624 |
| DOI: | 10.1080/00213624.2023.2154539 |
| Database: | Business Source Complete |
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