New Study: Religious Freedom Good for Business, Economy

Written by Don Byrd

A new study (pdf) published in the Interdisciplinary Journal of Research on Religion demonstrates that a country’s level of religious freedom correlates strongly to its growth in GDP. In fact, religious freedom is one of only three variables the study found that is a “significant predictor” of GDP growth.

Here are some of the conclusions the researchers draw from the study:

One implication may be that businesses would benefit from taking religious freedom considerations into account in their strategic planning, labor management, and community interactions. For instance, in evaluating locations for future research and development operations, countries with good records on religious freedom may provide a favorable environment in which to practice innovation and experimentation.

On the basis of arguments from the religious economies theory and the empirical results presented, we conclude that religious freedom contributes to better economic and business outcomes and that advances in religious freedom are in the self-interest of businesses, governments, and societies …

Out of the 25 factors analyzed, including tax rates, public debt, and government expenditures, the study concluded that only religious freedom, monetary freedom and the previous 5-year rate of GDP growth were “significant predictors” of future GDP growth. Religious freedom was defined as the inverse of religious restrictions and hostilities.