The Sunni–Shia divide: Evidence from international trade

We show a decrease in trade between mainly Sunni and mainly Shia countries after the 1979 Iranian revolution. This outcome is driven by the religious preferences of the political rulers rather than those prevalent in the population. •After 1979, the divide between Sunni and Shia grew wider.•Trade be...

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Bibliographic Details
Published in:Economics letters Vol. 232; p. 111337
Main Author: Nicolini, Marcella
Format: Journal Article
Language:English
Published: Elsevier B.V 01-11-2023
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Summary:We show a decrease in trade between mainly Sunni and mainly Shia countries after the 1979 Iranian revolution. This outcome is driven by the religious preferences of the political rulers rather than those prevalent in the population. •After 1979, the divide between Sunni and Shia grew wider.•Trade between countries along this divide has reduced.•The decrease reflects the religious beliefs of political leaders.•It does not reflect the religious beliefs of the general population.•The divide is mostly political rather than doctrinal.
ISSN:0165-1765
1873-7374
DOI:10.1016/j.econlet.2023.111337