What are the determinants of economic growth in Muslim countries?

Abstract

Muslim countries are generally considered economically behind the non-Muslim countries, culturally conservative, authoritarian, and misogynistic. Although the Muslim population, as a whole, comprises an enormous economic potential, many Muslims in the world contend with poverty and illiteracy. Furthermore, economic disparity among Muslim nations is widening. This article examines the reasons behind economic inequalities among Muslim countries and explores whether Islam hinders economic growth or not. On the contrary to general belief that Islam hinders economic growth, this study showed that Islam by itself has no effect on economic prosperity in Muslim Countries. Using crosscountry regression, this empirical research displayed that the adaptation of technology and scientific innovations, investment to human capital, human development, and economic freedom are significant and necessary for economic growth in Islamic countries.