Abstract
Research into the links between religion and foreign direct investment is scarce, partly because research on religion has not been the traditional domain of business and economics. Nevertheless, religion affects the economies, political structures, legal environments, and social behaviors of people around the world and is, therefore, an important element of the international business environments. Foreign direct investment (FDI) decisions are often made after an assessment of the international business environments. This article makes a singular contribution by focusing on the impact of religion – religious freedom and religious diversity – on the foreign direct investment of Japanese companies. We find that national income and religious diversity significantly influence Japanese decisions to invest.
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