IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa04p94.html
   My bibliography  Save this paper

Interrelationship of economic growth and regional religious properties

Author

Listed:
  • Esa Mangeloja

Abstract

During the past few years, empirical economic growth modeling has emerged by constructing and testing numerous model and explanatory variable alternatives. One of the most promising recent idea consists that also religious aspects should be included as explanatory variables into economic growth models, therefore capturing influences of culture, moral and ethics. Moral institutions and ethics affect the economic development, as for example, trust and honesty are essential requirements for emerging economic activity. In this paper, analysis of economic growth extends from international to regional level. Religious activities and beliefs are documented over a long time period in many Western economies, making quantitative empirical time series data available. Firstly, following the idea and argumentation by Barro and Mc Cleary (2003a, 2002), “religious production efficiency” measure is constructed and used in economic growth regressions for8 OECD countries, proxying quantifiable dimensions of culture. By using panel estimation methods and additionally time-series estimations for each country, rather than usual cross-country regressions, more information is gained concerning the country specific growth and religion characteristics. Empirical evidence from the panel data estimations seems to suggest that religious beliefs attain more relevance than religious attendance. Religious production efficiency, containing both belief and activity aspects, was not found statistically significant with panel data or with individual 8 OECD countries growth model, except for Finland. Significant coefficient for Finland can be explained by referring to Finland’s unique religious market properties, as the level of religious beliefs have historically been unusually high, and continue to be, in Finland. Secondly, interrelationship of Finland’s religious and economic variables are analyzed in regional level. Three small Finnish cities, all with strong religious Christian revival background, gain positive and significant coefficients when consumer income growth is regressed by religious activity. Nevertheless, more exact understanding on the links between these concepts are essentially needed to better model the economic consequences of cultural, religious and moral variables. Therefore, several suggestions are presented to gain better growth information in the future empirical growth modeling, including better theoretical background, more robust estimation techniques and longer data.

Suggested Citation

  • Esa Mangeloja, 2004. "Interrelationship of economic growth and regional religious properties," ERSA conference papers ersa04p94, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa04p94
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa04/PDF/94.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Metin Cosgel & Lanse Minkler, 2004. "Religious Identity and Consumption," Review of Social Economy, Taylor & Francis Journals, vol. 62(3), pages 339-350.
    2. Robert J. Barro, 1991. "A Cross-Country Study of Growth, Saving, and Government," NBER Chapters, in: National Saving and Economic Performance, pages 271-304, National Bureau of Economic Research, Inc.
    3. Clive Beed & Cara Beed, 1996. "A Christian perspective on economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 3(1), pages 91-112.
    4. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    5. Bleaney, Michael & Nishiyama, Akira, 2002. "Explaining Growth: A Contest between Models," Journal of Economic Growth, Springer, vol. 7(1), pages 43-56, March.
    6. McCleary, Rachel & Barro, Robert, 2002. "Religion and Political Economy in an International Panel," Scholarly Articles 3221170, Harvard University Department of Economics.
    7. Charles I. Jones, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 495-525.
    8. Gary M. Anderson and Robert U. Tollison, 1992. "Morality and Monopoly: The Constitutional Political Economy of Religious Rules," Cato Journal, Cato Journal, Cato Institute, vol. 12(2), pages 373-392, Fall.
    9. Lipford, Jody & McCormick, Robert E. & Tollison, Robert D., 1993. "Preaching matters," Journal of Economic Behavior & Organization, Elsevier, vol. 21(3), pages 235-250, August.
    10. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
    11. Abbotts, Joanne E. & Williams, Rory G. A. & Sweeting, Helen N. & West, Patrick B., 2004. "Is going to church good or bad for you? Denomination, attendance and mental health of children in West Scotland," Social Science & Medicine, Elsevier, vol. 58(3), pages 645-656, February.
    12. Edward L. Glaeser & Gary S. Becker & Kevin M. Murphy, 1999. "Population and Economic Growth," American Economic Review, American Economic Association, vol. 89(2), pages 145-149, May.
    13. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-784, August.
    14. Klenow, Peter J. & Rodriguez-Clare, Andres, 1997. "Economic growth: A review essay," Journal of Monetary Economics, Elsevier, vol. 40(3), pages 597-617, December.
    15. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    16. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    17. Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 1-25.
    18. Keely, Louise, 2003. "Comment on: People's opium? Religion and economic attitudes," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 283-287, January.
    19. Lipford, Jody W. & Tollison, Robert D., 2003. "Religious participation and income," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 249-260, June.
    20. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
    21. L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
    22. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2003. "People's opium? Religion and economic attitudes," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 225-282, January.
    23. Barro, Robert J, 2000. "Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    24. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
    25. Hull, Brooks B. & Bold, Frederick, 1995. "Preaching matters: Replication and extension," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 143-149, June.
    26. Temple, Jonathan, 2000. "Growth Regressions and What the Textbooks Don't Tell You," Bulletin of Economic Research, Wiley Blackwell, vol. 52(3), pages 181-205, July.
    27. Anderson, Gary M, 1988. "Mr. Smith and the Preachers: The Economics of Religion in the Wealth of Nations," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 1066-1088, October.
    28. Robert Barro & Rachel M. McCleary, 2003. "International Determinants of Religiosity," NBER Working Papers 10147, National Bureau of Economic Research, Inc.
    29. Heath, W. C. & Waters, M. S. & Watson, J. K., 1995. "Religion and economic welfare: An empirical analysis of state per capita income," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 129-142, June.
    30. Robin Grier, 1997. "The Effect of Religion on Economic Development: A Cross National Study of 63 Former Colonies," Kyklos, Wiley Blackwell, vol. 50(1), pages 47-62, February.
    31. Barry R. Chiswick, 1983. "The Earnings and Human Capital of American Jews," Journal of Human Resources, University of Wisconsin Press, vol. 18(3), pages 313-336.
    32. Robert J. Barro & Rachel McCleary, 2003. "Religion and Economic Growth," NBER Working Papers 9682, National Bureau of Economic Research, Inc.
    33. Laurence R. Iannaccone, 1998. "Introduction to the Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1465-1495, September.
    34. Greif, Avner, 1994. "Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reflection on Collectivist and Individualist Societies," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 912-950, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Esa Mangeloja, 2004. "Economic Growth and Religious Production Efficiency," DEGIT Conference Papers c009_040, DEGIT, Dynamics, Economic Growth, and International Trade.
    2. Esa Mangeloja, 2005. "Economic growth and religious production efficiency," Applied Economics, Taylor & Francis Journals, vol. 37(20), pages 2349-2359.
    3. Marcus Noland, 2003. "Religion, Culture, and Economic Performance," Working Paper Series WP03-8, Peterson Institute for International Economics.
    4. Rupasingha, Anil & Chilton, John b., 2009. "Religious adherence and county economic growth in the US," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 438-450, October.
    5. Norman Gemmell, 2001. "Fiscal Policy in a Growth Framework," WIDER Working Paper Series DP2001-84, World Institute for Development Economic Research (UNU-WIDER).
    6. Janine Höhener & Christoph A. Schaltegger, 2012. "Religionsökonomie: eine Übersicht," CREMA Working Paper Series 2012-08, Center for Research in Economics, Management and the Arts (CREMA).
    7. Mangeloja, Esa & Ovaska, Tomi, 2010. "Mode of Delivery and the Effectiveness of Foreign Aid: The Example of Missionary Work," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 6(1-2), pages 1-14, April.
    8. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 3, pages 1-72.
    9. Rietveld, C.A. & van Burg, E., 2013. "Religious beliefs and entrepreneurship among Dutch protestants," ERIM Report Series Research in Management ERS-2013-015-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    10. Stefania Villa, 2005. "Determinants of growth in Italy. A time series analysis," Quaderni DSEMS 24-2005, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    11. Brian Piper, 2014. "Factor-Specific Productivity," Working Papers 1401, Sam Houston State University, Department of Economics and International Business.
    12. Turnovsky, S., 2000. "Growth in an Open Economy: some Recent Developments," Papers 5, Warwick - Development Economics Research Centre.
    13. Derek Headey, 2008. "The Principal Components of Growth in the Less Developed Countries," Kyklos, Wiley Blackwell, vol. 61(4), pages 568-598, November.
    14. Günther Rehme, 2011. "Endogenous Policy And Cross‐Country Growth Empirics," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(2), pages 262-296, May.
    15. Turnovsky, Stephen J, 2004. "The Transitional Dynamics of Fiscal Policy: Long-Run Capital Accumulation and Growth," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(5), pages 883-910, October.
    16. Ahmed, Ali & Salas, Osvaldo, 2008. "Is the Hand of God Involved in Human Cooperation? An Experimental Examination of the Supernatural Punishment Theory," CAFO Working Papers 2009:1, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    17. Joshua J. Lewer & Hendrik Van den Berg, 2007. "Religion and International Trade: Does the Sharing of a Religious Culture Facilitate the Formation of Trade Networks?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(4), pages 765-794, October.
    18. L. Bettendorf & E. Dijkgraaf, 2008. "Religion and Income," Tinbergen Institute Discussion Papers 08-014/3, Tinbergen Institute.
    19. Bettendorf, L. & Dijkgraaf, E., 2010. "Religion and income: Heterogeneity between countries," Journal of Economic Behavior & Organization, Elsevier, vol. 74(1-2), pages 12-29, May.
    20. Ahmed, Ali M. & Salas, Osvaldo, 2008. "Is The Hand Of God Involved In Human Cooperation?An Experimental Examination Of The Supernatural Punishment Theory," CAFO Working Papers 2008:1, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa04p94. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.ersa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.