Continuity and Change in the Economic Ethics of Buddhism: Evidence From the History of Buddhism in India, China and Japan

This article presents Buddhist economic ethics as a historically dynamic field shaped by doctrine, monastic regulation, lay practice, political patronage, and regional adaptation. It begins with early Theravāda Buddhism, where the Four Noble Truths, karma, non-self, dependent origination, right livelihood, and nonattachment define the ethical framework for wealth and economic life. In this context, laypeople are encouraged to earn wealth honestly, avoid harmful occupations, practice disciplined consumption, support family and society, and give generously to the Saṅgha; monks, by contrast, are expected to live with minimal possessions and avoid economic accumulation. The article then turns to Mahāyāna Buddhism in India and China, showing how changes in the understanding of nirvāṇa, saṃsāra, compassion, and the bodhisattva ideal created broader space for social and economic activity, especially in monasteries. In medieval China, Buddhist institutions developed extensive commercial operations, including loans, grain lending, land rental, pawnshops, and “inexhaustible treasuries,” while Chan Buddhism revalued manual labor as part of religious discipline. The final major section analyzes Japanese Buddhism, where Buddhist economic ethics absorbed Confucian and Shinto influences, supported social harmony, loyalty, productive labor, and temple-state cooperation, while temples accumulated land, wealth, and institutional power. Taken together, the article shows both continuity and transformation: continuity in the Buddhist ideal of nonattachment and generosity, and change in the concrete economic practices of Buddhist communities across historical and cultural contexts.