The Impact of Religious Institutions on Economic Growth in Indonesia : Evidence from Selected Province

Listiono Listiono

Abstract


In recent years, the study of the influence of religion on the economy is rising. However, in Indonesian context there is limited number of literature that specifically explores the relationship between religion and economic. To fill this gap, this article aims to investigate the effect of religion –with religious institutions as proxies- on economic growth using panel data from 2010 to 2017 of selected provinces. This model based on the Cobb-Douglas model and estimated using fixed-effects. The result shows that economic growth positive significantly affected by Protestant and Hindu variables. On other side, there in no strong evidence that Islam and Catholic have siginificant impact on economic growth. This paper does not claim that one religion is better than others in terms of economic activity, as measured by economic growth, but rather on how the role of religious institutions on social networks encourage economic growth. An important point of this paper is that in Indonesian context, religion has significant influences on the economic growth as in many other countries. Keywords: Religion, economic growth, Indonesia, fixed-effects

 


Keywords


Religion, growth, Indonesia, fixed-effects

Full Text:

PDF

References


Abrams. Lewis. 1995. “Cultural and Institutional Determinants of Economic Growth : A Cross-Section Analysis.” Public Choice 83 (3/4): 273–89.

Adams, John. 2001. “Culture and Economic Development in South Asia.” The American Journal of Economics and Sociology 52: 152–75. http://www.jstor.org/stable/1049019.

Ananta, Aris, and Udi H Pungut. 1992. “Population Change and Economic Development in Indonesia.” ASEAN Economic Bulletin 9 (1): 55–65.

Barro, Robert J., and Rachel M. McCleary. 2003. “Religion and Economic Growth across Countries.” American Sociological Review 68 (5): 760. https://doi.org/10.2307/1519761.

Benjamin, Daniel J., James J. Choi, and Geoffrey Fisher. 2016. “Religious Identity and Economic Behavior.” Review of Economics and Statistics 98 (4): 617–37. https://doi.org/10.1162/REST_a_00586.

Blum, Ulrich, and Leonard Dudley. 2001. “Religion and Economic Growth: Was Weber Right?” Journal of Evolutionary Economics 11 (2): 207–30. https://doi.org/10.1007/PL00003862.

Deheija, R. H., Deheija, V. H. 1993. “Religion and Economic Activity in India : An Historical Perspective.” The American Journal of Economics and Sociology 52 (2): 145–53.

Eum, Wonsub. 2011. “Religion and Economic Development -A Study on Religious Variables Influencing GDP Growth over Countries.”

Franke RH. Hofstede G. and Bond MH. 1991. “Cultural Roots of Economic Performance : A Research Note.” Strategic Management Journal 12 (Special Issue: Global Strategy): 165–73.

Frankema, Ewout, and J. Thomas Lindblad. 2006. “Technological Development and Economic Growth in Indonesia and Thailand since 1950.” Asean Economic Bulletin 23 (3): 303–24. https://doi.org/10.1355/ae23-3b.

Kuran, Timur. 2004. Islam and Mammon. Princeton University Press,. https://doi.org/10.1515/9781400837359.

Maridal, J. Haavard. 2013. “Cultural Impact on National Economic Growth.” Journal of Socio-Economics 47: 136–46. https://doi.org/10.1016/j.socec.2012.08.002.

Mccleary, Rachel M, and Robert J Barro. 2006. “Religion and Economy.” The Journal of Economic Perspectives 20 (2): 49–72.

Noland, Marcus. 2005. “Religion and Economic Performance.” World Development 33 (8): 1215–32. https://doi.org/10.1016/j.worlddev.2005.03.006.

Palanca, Ellen H. 1986. “Religion and Economic Development.” Philippine Studies 34 (2): 162–80. http://www.jstor.org/stable/42633590.

Petrakis, Panagiotis, and Pantelis Kostis. 2013. “Economic Growth and Cultural Change.” Journal of Socio-Economics 47: 147–57. https://doi.org/10.1016/j.socec.2013.02.011.

Porta, R. La, F. Lopes-de-Silanes, A. Shleifer, and R. W Vishny. 1997. “Trust in Large Organizations.” The American Economic Review 87 (2). https://www.jstor.org/stable/2950941.

Pryor, Frederic L. 2007. “The Economic Impact of Islam on Developing Countries.” World Development 35 (11): 1815–35. https://doi.org/10.1016/j.worlddev.2006.12.004.

Putnam, Robert D. 1993. Making Democracy Work: Civic Tradition on Modern Italy. Princeton University Press.

Rao, M. S. A. 1969. “Religion and Economic Development.” Sociological Bulletin 18 (1): 1–15.

Sequeira, Tiago Neves, Ricardo Viegas, and Alexandra Ferreira-Lopes. 2017. “Income and Religion: A Heterogeneous Panel Data Analysis.” Review of Social Economy 75 (2): 139–58. https://doi.org/10.1080/00346764.2016.1195640.

Tsen, Wh, and Fumitaka Furuoka. 2005. “The Relationship between Population and Economic Growth in Asian Economies.” ASEAN Economic Bulletin 22 (3): 314–31. https://doi.org/10.1355/AE22-3E.

Wang, Qunyong, and Xinyu Lin. 2014. “Does Religious Beliefs Affect Economic Growth? Evidence from Provincial-Level Panel Data in China.” China Economic Review 31: 277–87. https://doi.org/10.1016/j.chieco.2014.10.006.

Wooldridge, J. M. 2009. Introductory Econometrics: A Modern Approach. South-Western. Vol. 4e. https://doi.org/10.1016/j.jconhyd.2010.08.009.

Yusoff, Mohammed B. Febrina, Ilza. 2014. “Trade Openness , Real Exchange Rate , Gross Domestic Investment and Growth in Indonesia.” Margin-The Journal of Applied Economic Research 81 (1): 1–13. https://doi.org/10.1177/0973801013506398.




DOI: https://doi.org/10.18196/AIIJIS.2020.0112.40-57

Article Metrics

Abstract view : 29 times
PDF - 13 times

Refbacks

  • There are currently no refbacks.


Copyright (c) 2020 Afkaruna: Indonesian Interdisciplinary Journal of Islamic Studies

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.



p-ISSN (Print) 2599-0551, e-ISSN (Online) 2599-0586

Afkaruna: Indonesian Interdiciplinary Journal Of Islamic Studies indexed by:   


Office:

tumblr counter
Afkaruna View My Stats