Migrants' Religious Beliefs, Social Capital, and Economic Performance

Abstract

This paper examines how religious beliefs, social capital, and migration interact to shape economic performance. Social capital—understood as trust, civic norms, and social networks—emerges as a key informal institution influencing development. Religion plays a foundational role in shaping these civic traits, with different doctrines fostering varying economic attitudes. Migration introduces persistent cultural traits that can either strengthen or erode the host country’s social capital, depending on integration dynamics. Using an extended Solow growth model, we explore the impact of both lump-sum and sustained migration flows, accounting for cultural distance, institutional support, and religious compatibility. We discussed the convergence of migrants’ social capital over time and emphasize the role of legal institutions and integration policies in shaping this process. The paper highlights how migration is not merely a demographic or economic phenomenon but a cultural process with long-term implications for social cohesion and economic growth. Policy design, particularly around civic norms, plays a central role in these dynamics.