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The Economic Impact of Islam on Developing Nations

This essay focuses on two questions: How do the current economic systems and institutions of Islamic nations differ from those of other nations at roughly the same stage of economic development? And what is the impact of Islam on the economic and social performance of these nations? Using a cluster analysis and data on forty-four economic institutions to define economic systems, I find that no special Islamic economic system can be isolated. Furthermore, a regression analysis shows that the share of Muslims in the population seems unrelated to the presence or absence of most particular economic institutions. Turning to twenty-three indicators of economic and social performance, I find that the presence of Islam has likewise very little influence.