The Economics of Religious Conflicts

Sriya Iyer

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: This chapter explores the economics of religious conflicts across the world. It expounds why an economic perspective may be useful in understanding religion. It discusses the religious markets approach to viewing religion, the role of club goods, religious competition, secularization and religious pluralism. The chapter then discusses theoretical work in the economics of religious conflicts including economic models which have examined conflicts as well as the displacement of populations. Empirical studies of religious conflicts are focussed on Africa, South Asia, the Mediterranean, the Near East and the Middle East. These studies examine the causes, consequences and costs of conflict. The chapter then explores the relationship between democracy, religion and conflict, providing examples of the methodological issues which economists encounter in examining these interactions, also drawing on studies of South Asia and elsewhere to illustrate how statistical analysis of religious conflicts can be conducted. The chapter concludes by arguing that more research needs to be done on how economies can recover better and faster after they have experienced episodes of religious conflicts.

Date: 2025-04-15
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