Islamic Revival and Economic Development

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Middle Eastern Studies (MA)

Lie Atjam, Lorenzo (2020)

Islamic Revival and Economic Development

Master thesis | Middle Eastern Studies (MA)

In this research, I discuss whether Islamic principles may serve as a valid alternative approach for economic development. Specifically, I test whether being an Islamic country since the Islamic revival of the 1970s affects the country’s total factor productivity (TFP). Using statistical methods of the analysis of variance (ANOVA) and the ordinary least squares (OLS) regression on cross-country data between 1974–2017, I find that the Islamic revival of the 1970s in Muslim countries is not associated with the countries’ total factor productivity (TFP), measured as the relative value against the benchmark of the United States’ total factor productivity (TFP).

Total Factor Productivity