Religiosity, Economic Growth and Development Dynamics: An International Perspective

This study examines the relationship between religiosity and economic growth as an indicator of modernization. It also examines the relationship between religiosity and various dimensions of development such as educational attainment, mortality rate, and urbanization. To this end, average country-level data from 6 different survey waves of the World Values Survey, spanning the period 1989-2022, and various data sources, including the World Christian Encyclopedia, Religion and State Project, Penn World Table, World Development Indicators are utilized. The analyses include a maximum of 108 countries. The ongoing secularization paradigm is experienced differently in each society, depending on the predominance of religious belief and societal characteristics, including the degree of cultural and social diversity. The Seemingly Unrelated Regression method is employed to address the potential problem of correlation between the error terms of the regressions utilizing different religiosity indicators. Estimates indicate that religiosity is negatively associated with economic growth, the presence of a state religion and religious pluralism, while it is positively associated with state regulation of the religious market. Education, which is one of the most fundamental indicators of development, is positively correlated with religiosity. Nevertheless, the most characteristic indicator of modernization and development, urbanization, is negatively related to religiosity.