A research project that was presented at the UC Irvine Honors Research Conference

1. Economic Growth: The Effects of Religion !
On Economic Development!
Talin Koutnouyan, Business Economics
Dr. Mark Maier, Professor of Economics
Glendale Community College
Abstract! Results! Conclusion!
Economic Growth and Church Attendance Economic Growth and Belief In Hell As Barro and McCleary demonstrated, a relationship does
There are a variety of different factors which influence (belief in hell included within the data)
the economic growth rate of a country. One of the most exist between religion and its effect on economic growth. In
overlooked factors is religion and its influence on the .06 .06 addition to their thesis, it should also be taken into
economic development of a country. Using the data that is consideration that it is not the number who attend church
within a country that causes the economic growth and
growth rate (unexplained part)
growth rate (unexplained part)
readily made available through international surveys, two .04 .04
primary causes of economic growth rate are established. development, but the percentage of those who believe in
The first is church attendance, and the second is the heaven and hell. One main problem encountered
.02 .02
religious beliefs of individuals within the country. After throughout the research was the misleading data that
plotting the growth rates in correlation to the percentages of showed high GDP numbers where crime rates and violence
.00 .00 were high. As a result, I disagree with that aspect of the
church attendance, and belief in heaven and hell, I
concluded that based on Barro’s and McClearly’s thesis, it research presented by Anderson and would like to
is not church attendance, rather the belief in hell, heaven, -.02 -.02 recommend to use data containing NDP which would
or both that causes the economic growth rate of a country. provide a more accurate picture of the economy. Moreover,
More importantly, a solution is provided on how an since factors of belief in heaven and hell lend to the growth
-.04 -.04 of a country, I would like to conclude that it would be
emphasis in morals and ethics in relation to work can be
implemented to result in the overall growth of a country. beneficial for a country to present information and educate
-.06 -.06 the public with morals pertaining to hard-work to cause an
-3 -2 -1 0 1 2 3 4 -3 -2 -1 0 1 2 3 4 economic prosperity among the society.
monthly church attendance (transformed) Belief in Hell (transformed)
Introduction! .06
Economic Growth and Church Attendance
(belief in heaven included within the data) Economic Growth and Belief In Heaven
References!
.06
growth rate (unexplained part)
.04
growth rate (unexplained part)
.04
The research topic for this project primarily deals with the
subject of religion and its link on the economic growth of a .02 Religion and Economic Growth across Countries,
country. During the 20th century, Max Weber a German .02 Robert J. Barro; Rachel M. McCleary American Sociological
Sociologist, first presented his theory on the possible link .00 Review, Vol. 68, No. 5. (Oct., 2003), pp. 760-781.
between religion and economics in his book: The Protestant .00
Ethic and the Spirit of Capitalism. His main hypothesis Mr. Smith and the Preachers: The Economics of
-.02 Religion in the Wealth of Nations Gary M. Anderson, The
demonstrated that capitalism was first initiated through the
-.02 Journal of Political Economy, Vol. 96, No.5. (Oct., 1988), pp.
credos of a religious group, the Puritans. As a result, this
caused Weber to conclude that for a country to be successful -.04 1066-1088.
in capitalism, that success would be largely dependent on the -.04
belief system the society was structured on. In addition to Spirit of Capitalism. Religion and Economic
-.06 Development., Harvard International review, Robert J
Weber’s idea, there were economic studies done by Gary M. -3 -2 -1 0 1 2 3 4 -.06
Anderson, an economist whom analyzed the effects of monthly church attendance (transformed) -3 -2 -1 0 1 2 3 4 Barro
religious extremism, which he concluded to “have positive Belief in Heaven (transformed)
effects on economic growth.” However, I provide a counter- Religion and Economic Development : An idea whose
Positive Correlation
example using Gujarat, a Hindu state to prove the negative time has gone, Stephen K Sanderson, Joleen Loucks,
effects it can have on a nation’s economy in the long run.
Negative Correlation 2004
= =
Methods! Growth Rate Reduction Economic Growth Acknowledgements!
• The data included in this research includes indicators of • The data shows that increases for church attendance • In contrast, for given levels of church attendance, I would like to thank the following: Dr. Mark Maier my faculty
economic, political and social aspect for 59 countries reduces economic growth. increases in religious beliefs-notably belief in hell, heaven, mentor, for his encouragement, patience and expert advice;
observed since the year 1990. and an afterlife tend to increase economic growth. Dr. Michael Harnett, for supplying me with the valuable
• Higher levels of church attendance depresses economic information necessary for the success of my project;
• The main sources for this data is the World Bank and growth because greater attendance signifies a large use • Through the demonstration of the figures above, it is members of the Glendale Community College Scholars
data from Barro and McCleary’s research paper. of resources by the religion sector. shown that a belief in hell is more potent for the economic Program, for their opinions and input; and finally, special
prosperity as opposed to a belief in heaven. thanks to my family and friends who supported me
• The data set was then enhanced by including measures • The overall effect combines the resources used up by the throughout my research.
of religiosity using the World Values Survey for the year religion sector, the social capital aspect of this sector, and • Beliefs stimulate growth because they help sustain
2002. the influence of organized religion on laws and specific individual behaviors that enhance productivity
regulations. within the economy.
• Then, the information which included church attendance
and beliefs in correlation to GDP increase was plotted and
the error percentage was calculated for each regression
point.