Work detail

Islam and Economic Performance: A Meta-Analysis

Author: Mgr. Patrik Kratochvíla
Year: 2021 - summer
Leaders: doc. PhDr. Tomáš Havránek Ph.D.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 137
Awards and prizes:
Link:
Abstract: The ongoing economic supremacy of the West has prompted debates on the
ability of non-Christian religions to generate economic growth. The academic
literature focusing on the Islamic religion o↵ers multiple answers, leaving the
matter unresolved and with no definite conclusion. Based on a quantitative survey of 315 estimates collected from 41 relevant academic studies, Islam exerts a
positive and statistically significant e↵ect on economic growth in 40% of cases,
a negative and statistically significant e↵ect in 10% of cases, and virtually zero
e↵ect in 50% of cases. Tests for publication bias indicate slightly preferential
reporting against negative estimates. When I correct for this bias, I find that
the mean e↵ect of Islam on economic growth is positive but economically small.
I also construct 79 moderator variables capturing methodological heterogeneity
among the primary studies and apply the method of Bayesian model averaging
to deal with model uncertainty in meta-analysis. The analysis shows that the
heterogeneity in the results is primarily driven by di↵erences in the sample composition and the choice of control variables, and to a lesser extent by estimation
characteristics and proxies for Islam employed.

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