Spirit of Capitalism: Religion and Economic Development
Author(s)
Barro, Robert J.
Abstract
In the continuing search for an adequate theory of economic growth, some researchers have increasingly argued that such explanations for growth should go further to include a nation’s culture, especially religion. In fact, recent research indicates that the economic influence of religion has a profound impact on economic performance. Religion influences the formation of beliefs that shape individual traits such as honesty, work ethic, thrift, and openness to strangers. Religious beliefs and related character traits can be seen as “spiritual capital,” a concept that is analogous to the human capital that economists have found to be important for worker productivity. Human capital includes the skills and knowledge that come from formal schooling, on-the-job training, and guidance from parents. Analogously, spiritual capital includes formal education through organized religion, as well as influences from family and social interactions. Thus, the economic effects of organized religion can be seen as operating through the formation of spiritual capital.
