The Multidimensional Effects of Religion on Socioeconomic Development: A Review of the Empirical Literature

Abstract

Religion plays a fundamental role in most people's lives with profound implications for socioeconomic development. This survey provides a comprehensive and systematic overview of the causal mechanisms between religion and development discussed and tested in the economics literature, and reviews quantitative empirical evidence on the actual effects of religion on economic and social dimensions of development. We start by disaggregating the concept of religion into four religious dimensions and propose a framework to conceptualize causal mechanisms. Numerous mechanisms are possible but only a few uncontested findings exist. Religion is ambivalent vis-à-vis development: although religious ideas can foster certain forms of human capital acquisition and labor market participation, scholars have found a negative relationship between religious dimensions and both income and gender equality as well as innovation activities. Religious identity is also a source of labor market discrimination and has ambivalent effects on economic growth and social cohesion. Methodological challenges refer to the availability of fine-grained data, especially for developing countries, the use of concepts and definitions, and the lack of causal inference.

Human fertility in relation to education, economy, religion, contraception, and family planning programs

“…In contrast, TFR is higher when religiosity is stronger. Religiosity is also associated with fewer school years, lower GDP per capita and less contraceptive use, in line with several studies of religion, gender aspects, and socioeconomic development ( [105,106], but see also [30]).…”

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“…The link between religion and economic behavior has increasingly attracted scientific attention (Basedau et al, 2018). In our study we investigated relationship between strength and positivity of religious identification and attitudes towards economic behavior in a group of Orthodox Christians and Sunni Muslims in Russia.…”

“…First, the role of religious identification, which also functions as a factor of ethnic differentiation and integration, has increased in recent years (WIN -Gallup International Association, 2012). Second, the present study does not focus on macroeconomic and social problems, but rather on social and economic attitudes and models of peoples' behavior that are often imbued within a culture and eventually determine the socioeconomic development of a country (Basedau, Gobien, & Prediger, 2018;Guiso, Sapienza, & Zingales, 2006).…”

Religion and Innovation in Europe: Implications for Product Life-Cycle Management

“…One of the promising areas where research has recently and rapidly increased is the study of the relationship between religion and innovation (Bénabou et al 2013(Bénabou et al , 2015; Barro and McCleary 2003;Guiso et al 2003;Cavalcanti et al 2007;Becker and Woessmann 2009;Levy and Razin 2012;Stark et al 1996;Yerxa 2016;McCleary and Barro 2019;Carpantier and Litina 2019;Peifer et al 2019;Liu et al 2018;Basedau et al 2018;Sherkat 2017;Huang et al 2016). Religion has an impact on innovation, as has been demonstrated by different investigations.…”