Religion in Emerging and Developing Regions

Sara Lowes, Benjamin Marx and Eduardo Montero

No 34167, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines the evolving relationship between religion and economic development in emerging and developing countries (EDCs). Building on large-scale survey data and recent scholarship, we document persistent and, in many regions, increasing levels of religiosity. First, we present global trends in religious beliefs and practices, highlighting a religious divergence between EDCs and high-income countries, as well as the continued prevalence of traditional belief systems alongside major world religions. Second, we analyze the determinants and consequences of religious behavior, showing how income volatility, financial insecurity, and cultural transitions sustain demand for religion. Third, we explore the institutional and political dimensions of religion in EDCs, emphasizing the role of religious institutions as public goods providers and as politically influential actors. This discussion offers a framework for understanding religious organizations as adaptive, competing platforms in pluralistic religious marketplaces. Overall, our findings suggest that religious adaptation, rather than decline, is central to understanding the future of religion and its economic implications in the developing world.

JEL-codes: N10 O1 Z1 Z12 (search for similar items in EconPapers)
Date: 2025-08
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