The Economic Impact Of Islam On Developing Countries

Document Type

Article

Publication Date

11-1-2007

Published In

World Development

Abstract

This essay focuses on two questions: How do the current economic systems and institutions of Muslim countries differ from those of other countries at the same stage of economic development? What is the impact of Islam on the economic and social performance of these countries? Employing a cluster analysis I find that there is no special Muslim economic system; moreover, few economic institutions are uniquely Muslim. Using a regression analysis I also find that the presence of Islam has relatively little influence on most economic or social performance indicators. In the analysis of Muslim economies, religion does not appear to be a useful explanatory variable. (c) 2007 Elsevier Ltd. All rights reserved.

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