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Religion and Economic Development: Past, Present, and Future

Author

Listed:
  • Sascha O. Becker
  • Amma Panin
  • Steven J. Pfaff
  • Jared Rubin

    (Chapman University)

Abstract

This chapter examines the role of religion in economic development, both historically and today. Religion's influence varies globally, with high religiosity in countries like Pakistan and low rates in China. Despite declines in some Western countries, religion remains influential worldwide, with projected growth in Muslim populations due to higher fertility rates. Religion continues to shape societal norms and institutions, such as education and politics, even after its direct influence fades. The chapter explores how religious institutions and norms have impacted economic outcomes, focusing on both persistence and decline. It also examines cultural transmission, institutional entrenchment, networks, and religious competition as mechanisms sustaining religion's influence. We explore the relationship between religion and secularization, showing that economic development does not always reduce religiosity. Lastly, the chapter highlights gaps in the literature and suggests future research areas on the evolving role of religion in economic development.

Suggested Citation

  • Sascha O. Becker & Amma Panin & Steven J. Pfaff & Jared Rubin, 2025. "Religion and Economic Development: Past, Present, and Future," Working Papers 25-01, Chapman University, Economic Science Institute.
    • Handle: RePEc:chu:wpaper:25-01
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    File URL: https://digitalcommons.chapman.edu/esi_working_papers/415/
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    Cited by:

    1. Jasmin Vietz & Ingrid Hoem Sjursen, 2025. "Leveraging Religious Leaders to Increase Voluntary Tax Compliance: Experimental Evidence from Tanzania," ifo Working Paper Series 415, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. Sascha O. Becker & Jeanet Sinding Bentzen & Chun Chee Kok, 2025. "Gender and Religion: A Survey," Monash Economics Working Papers 2025-18, Monash University, Department of Economics.
    3. Francesco Cinnirella & Sebastiano Della Lena & Elena Manzoni & Fabrizio Panebianco, 2026. "God, Guilt, and Giving: Public Good Contribution Among Catholics and Protestants," CESifo Working Paper Series 12414, CESifo.

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    Keywords

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    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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