| 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. |