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Secularization In Malaysia: Evidence From Zakat Contribution

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  • Ziad Esa Yazid

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  • Joriah Mohamad
  • Henk Folmer

Abstract

This paper investigates the relationship between economic growth and religion, particularly whether growth leads to desecularization. The secularization hypothesis (which is the opposite to the desecularization hypothesis (Casanova 1994); Berger 1999) ) postulates that economic growth is correlated with a decline in church membership and related practices, such as church attendance and paying church taxes. Empirical evidence for the secularization hypothesis is provided by among others, (Harskamp 2005; Kennedy 2005). However, (Gorski 2000; Alvey 2003) question the secularization hypothesis and postulate that religious movements remain strong despite economic development. So far, the secularization hypothesis has been mainly tested for Christians in developed countries. For instance, (Becker 2005) finds for the Netherlands that Church membership has been decreasing year after year while SCP (year) predicts that the secularization process will continue for the coming decades. The proposed paper revisits the secularization hypothesis for Muslims in Malaysia. Secularization is measured as individual contribution to Zakat which is a donation to those who are less fortunate. It is obligatory for a Muslim to donate 2.5% of her or his wealth each year to. In Malaysia Zakat is not imposed by the government; hence, it is voluntary. Therefore, it can be considered as an indicator of one's attitude to religion and its institutions, i.e as an indicator of (de)secularization. On the basis of a nationwide data set for the year 2005 we test an individual's Zakat contribution as a function of income controlling for various regional and socio-economic characteristics. Malaysia is an important and interesting case to test the secularization hypothesis because it is a rapidly developing country. Moreover, it is predominantly Muslim with a relatively well-developed education system which does not only focus on conventional fields but also on religion which has increased Malaysians' awareness of their religion. To our best knowledge, the proposed study is the first relating to a Muslim country. Keywords: secularization, religiosity, economic development, Malaysia

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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p1645.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa10p1645

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  1. Lipford, Jody W. & Tollison, Robert D., 2003. "Religious participation and income," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 249-260, June.
  2. Bruce Sacerdote & Edward L. Glaeser, 2001. "Education and Religion," Harvard Institute of Economic Research Working Papers 1913, Harvard - Institute of Economic Research.
  3. Sacit Hadi Akdede & Hakan HotunluoĆ°lu, 2008. "Economic Development and Religiosity: An Investigation of Turkish Cities," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Proceedings of the Conference on Emerging Economic Issues in a Globalizing World, pages 261-271 Izmir University of Economics.
  4. Azzi, Corry & Ehrenberg, Ronald G, 1975. "Household Allocation of Time and Church Attendance," Journal of Political Economy, University of Chicago Press, vol. 83(1), pages 27-56, February.
  5. McCleary, Rachel & Barro, Robert, 2002. "Religion and Political Economy in an International Panel," Scholarly Articles 3221170, Harvard University Department of Economics.
  6. McCleary, Rachel & Barro, Robert, 2003. "Religion and Economic Growth across Countries," Scholarly Articles 3708464, Harvard University Department of Economics.
  7. Alvey, James E., 2003. "Adam Smith'S Globalization (But Anti-Secularization) Theory," Discussion Papers 23716, Massey University, Department of Applied and International Economics.
  8. Iannaccone, Laurence R, 1992. "Sacrifice and Stigma: Reducing Free-Riding in Cults, Communes, and Other Collectives," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 271-91, April.
  9. Sander, William, 2002. "Religion and human capital," Economics Letters, Elsevier, vol. 75(3), pages 303-307, May.
  10. Warren B. Hrung, 2004. "After-Life Consumption and Charitable Giving," American Journal of Economics and Sociology, Wiley Blackwell, vol. 63(3), pages 731-745, 07.
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