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Empirical studies of religion and development across countries have investigated religious movements, examining particularly sect behaviour, with an emphasis on contrasting the ‘European experience of religious monopoly’ with the ‘American case of religious cacophony’12, drawing implications for the issue of whether regulation of religious organizations is necessary. This concern manifests itself in a sea of research projects, especially on religion in the United States13. In cross-country studies, economists have also revisited Weber’s hypothesis. Barro and McCleary (2003) assess the effect of religious participation and beliefs on a country’s rate of economic progress. Using international survey data for 59 countries drawn from the World Values Survey and the International Social Sciences Program conducted between 1981 and 1999, these authors find that greater diversity of religions is associated with higher church attendance and stronger religious beliefs. For a given level of church attendance, increases in some religious beliefs – notably belief in heaven, hell and an afterlife – tends to increase economic growth. Other studies have focused more on particular religions in varied historical time periods. For example, very useful insights have been gained by focusing on Islam and on Judaism. For Islam, there have been detailed investigations into financial systems in the Middle East including zakat (alms for charity) and the manner in which Islamic banks have been using a financing method equivalent to the rate of interest to overcome adverse selection and information problems. There has also been more detailed investigation into Islamic law and financial activity historically with implications for poverty reduction in the Middle East14. There is research that has examined Jewish occupational selection using historical data from the eighth and ninth centuries onward to explain the selection of Jews into urban, skilled occupations prompted by educational and religious reform in earlier centuries15. Data are also being used to elucidate the role of religion in explaining historical differences in education among Hindus and Muslims in India16.
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