Is Islam Compatible with Free-Market Capitalism? An Empirical Analysis, 1970-2010

Are majority-Muslim countries laggards when it comes to developing liberal economic institutions? Using an Index of Economic Freedom and its component parts, this study finds that Muslim-dominant countries (>50% of the population) are positively associated with free-market capitalism. Protestant...

Full description

Saved in:
Bibliographic Details
Published in:Politics and religion
Main Author: De Soysa, Indra 1964-
Format: Electronic Article
Language:English
Check availability: HBZ Gateway
Journals Online & Print:
Drawer...
Published: Cambridge Univ. Press [2019]
In:Politics and religion
Year: 2019, Volume: 12, Issue: 2, Pages: 227-256
Standardized Subjects / Keyword chains:B Near East / Islam / Economy / Offener Markt / Capitalism
Online Access: Volltext (Resolving-System)
doi
Description
Summary:Are majority-Muslim countries laggards when it comes to developing liberal economic institutions? Using an Index of Economic Freedom and its component parts, this study finds that Muslim-dominant countries (>50% of the population) are positively associated with free-market capitalism. Protestant dominance is also positively correlated, but the association stems from just two components of the index, mainly "legal security and property rights protection." Surprisingly, Protestant countries correlate negatively with "small government" and "freedom to trade," two critical components of free-market capitalism. Muslim dominance shows positive correlations with all areas except for "legal security and property rights." The results are consistent when assessing similar variables measuring property rights and government ownership of the economy collected by the Varieties of Democracy Project. Capitalistic policies and institutions, it seems, may travel across religions more easily than culturalists claim.
ISSN:1755-0491
Contains:Enthalten in: Politics and religion
Persistent identifiers:DOI: 10.1017/S1755048318000780