Religion has a two-way interaction with political economy. With religion viewed as a dependent variable, a central question is how economic development and political institutions affect religious participation and beliefs. With religion viewed as an independent variable, a key issue is how religiosity affects individual characteristics, such as work ethic, honesty, and thrift, and thereby influences economic performance. In this paper, we sketch previous studies of this two-way interaction but focus on our ongoing quantitative research with international data.
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McCleary et al. (2006) studied this question.
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