Protestant activities in China since 1870s contributed to long-run economic growth; the missionaries’ endeavors persisted in China through human capital channel

The long-term effects of protestant activities in China. Yuyu Chen, Hui Wang, Se Yan. Journal of Comparative Economics, January 13 2022. https://doi.org/10.1016/j.jce.2021.12.002

Research highlights

• Protestant activities in China since 1870s contributed to long-run economic growth

• Missionaries conducted disaster relief to effectively convert local people

• Missionaries promoted Western education and health care in China since 1870s

• The missionaries’ endeavors persisted in China through human capital channel

Abstract: Combining China's county-level data on Protestant density before 1920 and socioeconomic indicators in 2000, we find persistent positive effects of historical missionary activities on contemporary growth. Using disaster frequency as an instrument for Protestant distribution, we find stronger IV results. We further find that although improvements in education and health care account for a sizable portion of the total effects, other channels such as transformed social values may also matter. Our findings acknowledge the pioneering effects of missionary work in China's modernization, and imply that China's recent growth may benefit from of human capital and social values acquired in history.

Keywords: Chinese economyProtestant activitiesEconomic GrowthEducation