# Globalization and Religion

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> Source: Bahá'í Library Online (bahai-library.com), curated by Jonah Winters. Used by permission of the curator. Original citation: David Skinner, Globalization and Religion, bahai-library.com.
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> 
> International Business & Economics Research Journal                                            Volume 2, Number 5
> 
> Globalization And Religion
> David Skinner, (Email: dskinner@mvnu.edu), Mount Vernon Nazarene University
> 
> Abstract
> 
> This paper empirically examines whether globalization has a religious dimension. As far as the
> author can determine, no one has previously tested the question. The study concludes that
> publicly available databases show that much of globalization, or lack of it, can be predicted from
> data on the religions practiced in a nation.
> 
> T
> he events of September eleventh remind us that all religions are not alike. The religions practiced in a
> nation appear to have significance in the nation‟s political, social and economic arenas.
> 
> Much discussion has focused on whether globalization‟s overall impact is healthy or not. This research
> bypasses that issue to examine whether nations‟ globalization can be explained by the religions practiced by their
> citizens.
> 
> This paper uses Policy Magazine‟s Globalization Index (Globalization, 2002) as a globalization metric and
> data from the World Christian Encyclopedia (2001) as a measure of the distribution of various religions.
> 
> Univariate results indicate that nations with higher percentages of Christians, Protestants, Great
> Commission Christians, the nonreligious, and atheists exhibit greater globalization. Those with higher percentages
> of Muslims are less globalized.
> 
> When combinations of religions are considered, Great Commission Christians, Pentecostals/Charismatics,
> Ethnoreligionists, Protestants, Jews, and total Christians collectively, explain much of countries‟ Globalization
> Index.
> 
> Section I discusses the literature, Section II examines the data sources, Section III describes the
> methodology used, Section IV reports the findings, and the last section provides conclusions.
> 
> Section I: Literature Review
> 
> If all of the ten countries set to enter the European Union are admitted, it will form a 444 million-customer
> bloc (European, 2002). NAFTA has already created a market with 387 million customers. The GDPs of the two
> groups are estimated to be $8.4 Trillion and $11.4 trillion, respectively.
> 
> Lavin (2002) notes that “thanks largely to the fact that a decent education, Microsoft Office, and the
> Internet are all as useful in Manila as Minneapolis, the service sector has gone mobile.” International movement of
> many services is limited only by the cost of communication, and that has become virtually free.
> 
> After the October 2002 bombing of discos in Bali, a Florida travel agent said “her clients are increasingly
> asking about the religious makeup of destinations. „They really think about non-Muslim countries,‟” (Skittish,
> 2002)
> 
> Melloan (2002) reports that “only a very small percentage of the American workforce feels threatened by
> „cheap labor‟ abroad. And a fairly large percentage of the American polity understands that erecting trade barriers
> ___________________
> Readers with comments or questions are encouraged to contact the author via email.
> 
> International Business & Economics Research Journal                                             Volume 2, Number 5
> 
> or subsidizing selected domestic industries with tax dollars makes everyone poorer.” At the same time, the anti-
> globalization movement has been supported by organized labor.
> 
> In his review of Daugherty‟s Who‟s Afraid of Adam Smith, McMahon (2002) notes that those opposed to
> globalization claim that capitalism is synonymous with unbridled greed. However, Adam Smith was trained as a
> moral philosopher. He believed that markets forced people to be concerned about how they were viewed by others.
> “Far from rewarding naked greed, the market encourages probity, temperance and fair dealing. The fear of losing
> customers restrains „frauds‟ and corrects „negligence.‟ In trade as in life, Smith avowed, „honesty is the best
> policy.‟” Smith gave much of his own fortune to charity.
> 
> Foreign Policy Magazine and A. T. Kearney, Inc. produce the Globalization Index, which evaluates nations
> on economic integration, personal contact, technological connectedness, and political engagement (Gray, 2002).
> The current version of the Index evaluates sixty-two countries comprising 85% of the world‟s population and 90%
> of the world‟s economic output. The originators of the Index have found that the greater a nation‟s globalization the
> greater its income equality and political freedom and the lower its corruption. Higher globalization is also positively
> correlated with the World Values Survey of “subjective well-being”. Government taxing and spending levels are
> highly correlated with each other but uncorrelated with globalization. And, globalization is not correlated with the
> size of a country‟s economy.
> 
> A paper by the present author finds that 28.6% of the Index of Economic Freedom of nations can be
> explained by the religions practiced in those nations (reference omitted for blind reviewing). Therefore, it is
> possible that globalization, which is at least partly economic, may also be related to religion.
> 
> Section II: Data Sources
> 
> The Globalization Index Published by Foreign Policy Magazine in cooperation with A. T. Kearney, Inc.
> (hereafter called the Index) is a composite of several factors. It includes:
> 
>         Economic integration by combining data on trade, foreign direct investment and portfolio capital flows, and
> income payments and receipts….
>         Personal contact via levels of international travel and tourism, international telephone traffic, and cross-
> border transfers….
>         Technological connectedness by counting Internet users and the Internet hosts and secure servers….
>         Political engagement by taking stock of the number of international organizations and U.N. Security
> Council missions in which each country participates, as well as the number of foreign embassies that each
> country hosts. (Gray, 2002).
> 
> The distribution of various religions is obtained from the World Christian Encyclopedia (2001). Other
> sources were discarded since each excluded many of the countries in the Index or only gave a listing of religions
> without numbers. This source gives percentage breakdowns by various Christian categories and several other
> religions. The Christian categories are not mutually exclusive. For example, denominational categories (i.e.:
> Roman Catholic, Protestant, etc.) overlap with other types (i.e.: Evangelical, Pentecostal/Charismatic, etc.). Also,
> some individuals may practice more than one religion (e.g.: Some in the Caribbean practice both Roman
> Catholicism and Voodoo). Furthermore, religions are self reported and may be biased. These facts must be kept in
> mind when interpreting the results.
> 
> Some religions are clearly defined while others need to be clarified. The definitions below are verbatim
> from the World Christian Encyclopedia (2001).
> 
> Independents.Separated from, uninterested in, and independent of historic denominationalist Christianity.
> Evangelicals. A subdivision mainly of Protestants consisting of all affiliated church members calling
> themselves Evangelicals, or all persons belonging to Evangelical congregations, churches or
> denominations: characterized by commitment to personal religion.
> 
> International Business & Economics Research Journal                                               Volume 2, Number 5
> 
> Charismatics. Baptized members affiliated to nonpentecostal denominations who have entered into the
> experience of being filled with the Holy Spirit.
> Great Commission Christians. Believers in Jesus Christ who are aware of the implications of Christ‟s
> Great Commission, who have accepted its personal challenge in their lives and ministries, are attempting to
> obey his commands and mandates, and who are seeking to influence the body of Christ to implement it.
> Ethnoreligionists. Followers of a non-Christian or pre-Christian religion tied closely to a specific ethnic
> group, with membership restricted to that group; usually animists, polytheists, or shamanists. Older
> terminology: pagans, heathens, tribal religionists, traditional religionists. [In this paper the term is also
> used to include Chinese folk religionists and spiritists.]
> Nonreligious. Persons professing no religion, no interest in religion; secularists, materialists; agnostics, but
> not militantly antireligious or atheists.
> Atheists. Militantly anti-religious or anti-Christian agnostics, secularists, or marxists.
> 
> Section III: Methodology
> 
> Simple regressions are used to determine which individual religions are significantly related to the
> Globalization Index and stepwise multiple regression is employed to evaluate combinations of religions.
> 
> Since religions are correlated, the fraction of the Index explained by a set of them may differ from the total
> of the fractions explained by the religions individually. Three sets of religions are employed: Christian
> denominations (Christian, Roman Catholic, Protestant, Anglican, Orthodox, and Independent), Christian types
> (Christian, Evangelical, Pentecostal/Charismatic, and Great Commission Christians), and non-Christian religions
> (Muslim, Jewish, Baha‟i, Buddhist, Hindu, Ethnoreligionist, Nonreligious, and Atheist).
> 
> The Index is regressed on each set separately using stepwise regression to determine the combination of
> two, three, etc. within each set that provides the greatest explanatory power. Finally, stepwise regression is applied
> to all the classes to determine the set of religions that explains globalization the best.
> 
> To determine whether a larger model increases R2 enough to be significantly better than a smaller model,
> an F test is employed:
> 
> F = [(R2L – R2S)/(kL – kS)]/[(1 – R2L)/(N – kL – 1)]
> 
> where: df         = (N – kL – 1), (N – kS – 1)
> R2L       = the R2 of the larger model (more religious groups),
> R2S       = the R2 of the smaller model,
> kL        = the number of groups in the larger model,
> kS        = the number of groups in the smaller model, and
> N         = the sample size.
> 
> Section IV: Findings
> 
> Table 1 shows the correlation, slope, significance level, and adjusted R2 of the Index regressed individually
> on each group. The correlation is the Pearson Product-Moment correlation. Remembering that a smaller Index
> indicates higher ranking, a negative correlation indicates that religion is associated with more globalization.
> 
> The slope indicates the change in Index (from 1-62) associated with a one percent increase in the religion‟s
> membership. The sign has the same meaning as with correlation. The significance level is indicated to three
> decimals although some are much more significant than that. In the text, significance levels are reported in
> parentheses. For example, for each additional percent of Christians in the population, that country‟s Index changes
> –0.162. Christian nations are significantly (.006) more globalized.
> 
> International Business & Economics Research Journal                                               Volume 2, Number 5
> 
> The R2 indicates the proportion of the variation in Index explained by that religion‟s membership.
> Adjusted R2 are reported so those that are negative must be interpreted as zero. For example, the percentage of
> Christians in a nation explains 10.3% of that country‟s Globalization Index.
> 
> Only three non-Christian groups help to explain globalization. As the percentage of Muslims in a country
> increases, its globalization significantly (0.002) decreases. As the percentage of nonreligious and atheists
> populations increase, a nation‟s globalization significantly (0.035 and 0.077) increases.
> 
> Table 1
> Simple Regressions on Globalization Index
> Correlation     Slope            R2      Significance
> Christians:
> All Christians                              -0.343        -0.162          0.103       0.006
> Roman Catholic                              -0.033        -0.016          -0.016      0.801
> Protestant                                  -0.443        -0.348          0.183       0.000
> Anglican                                    -0.129        -0.272          0.000       0.318
> Orthodox                                    0.057         0.057           -0.013      0.661
> Independent                                 0.157         0.313           0.008       0.224
> Evangelical                                 -0.175        -0.499          0.015       0.172
> Pentecostal/Charismatic                     0.155         0.231           0.008       0.228
> Great Commission Christians                 -0.683        -0.886          0.458       0.000
> Non-Christian:
> Muslim                                      0.379         0.208           0.130       0.002
> Baha'is                                     0.181         12.915          0.017       0.159
> Buddhist                                    0.142         0.165           0.004       0.270
> Jew                                         -0.104        -0.192          -0.006      0.421
> Jewish (Israel excluded)                    -0.184        -8.174          0.017       0.156
> Hindu                                       0.144         0.269           0.004       0.265
> Ethnoreligions                              -0.054        -0.095          -0.014      0.677
> Nonreligious                                -0.268        -0.604          0.056       0.035
> Atheist                                     -0.226        -1.399          0.035       0.077
> 
> Stepwise regression of the Index on multiple denominations results in a two-factor model:
> 
> Index = 41.582 – 0.291 Protestant – 0.106 Christian,                                                 (1)
> (0.000) (0.003)             (0.067)
> 
> and a three-factor model:
> 
> Index = 40.300 – 0.291 Protestant - 0.127 Christian + 0.464 Independent.                             (2)
> (0.000) (0.002)              (0.027)           (0.043)
> 
> (The numbers in parentheses under each equation indicate the significance level of each coefficient.) The
> coefficients of Protestant and Christian are both negative indicating that the larger each group, the greater the
> globalization of the country. The positive Independent coefficient means that the more Independents a country has,
> the less globalized it is. It is interesting to note that Independents do not significantly explain globalization when
> taken separately. However, after part of the variance in the Index is explained by the other two variables,
> Independents significantly (0.043) explain the remaining variance.
> 
> International Business & Economics Research Journal                                               Volume 2, Number 5
> 
> The relative size of the coefficients indicate that a given percentage change in Independents has about one
> and one-half times the impact of the same change in Protestants which in turn has about two and one-half times the
> impact of Christians. The R2s of models (1) and (2) are 0.216 and 0.257. F tests show model (1) is significantly
> (0.000) better than Protestants alone and model (2) is significantly (0.000) better than model (1). No four-factor
> model does significantly better than (2).
> 
> When the Index is regressed on types of Christians, the best model is:
> 
> Index = 42.212 – 0.945 Great Commission + 0.410 Pentecostal/Charismatic.                              (3)
> (0.000) (0.000)                   (0.003)
> 
> The signs of the coefficients indicate that greater percentages of Great Commission Christians and smaller
> percentages of Pentecostal/Charismatics are related to more globalization. The proportional impact of a given
> percentage change in the former is more than twice as great as the impact of the same percentage change in the
> latter. The R2 of 0.525 is significantly (0.000) better than either group alone.
> 
> Stepwise regression of the Index on all Christian categories produces the same two-factor model (3). No
> three-factor model is better.
> 
> When the Index is regressed on non-Christian religions, only a two-factor model predicts better than the
> best single class. It is:
> 
> Index = 25.693 + 0.210 Muslim + 13.498 Baha‟i.                                                        (4)
> (0.000) (0.002)           (0.114)
> 
> The signs indicate that both religions are related to less globalization. Two observations need to be stressed,
> however. First, although adding Baha‟is to Muslims significantly (0.048) increases the R 2 from 0.130 to 0.152, the
> Baha‟i coefficient is not, by itself, significant. Second, the very large Baha‟i coefficient needs to be interpreted with
> caution. None of the nations in the study has more than 1.2% Baha‟is while Muslims account for up to 98.9%.
> Therefore, the overall impact of Muslims is greater. Thus, the Baha‟i contribution is statistically significant but may
> not be significant economically, etc.
> 
> When all religions are examined model (3) is again the best two-factor model. The best three-factor model
> for all religions is:
> 
> Index = 43.672 – 0.980 Great Commission + 0.448 Pentecostal/Charismatic
> (0.000) (0.000)                   (0.001)
> 
> -0.322 Ethnoreligion                                                                         (5)
> (0.041)
> 
> which has an R2 of 0.550. The best four-factor model is:
> 
> Index = 44.619 – 0.868 Great Commission + 0.546 Pentecostal/Charismatic
> (0.000) (0.000)                   (0.000)
> 
> -0.375 Ethnoreligion – 0.276 Protestant.                                                     (6)
> (0.007)               (0.000)
> 
> with an R2 of 0.660. The best five-factor model is:
> 
> Index = 45.744 – 0.889 Great Commission + 0.532 Pentecostal/Charismatic
> (0.000) (0.000)                    (0.000)
> 
> International Business & Economics Research Journal                                                                Volume 2, Number 5
> 
> -0.397 Ethnoreligion – 0.281 Protestant – 0.333 Jewish.                                                  (7)
> (0.003)               (0.000)            (0.155)
> 
> with an R2 of 0.688. The best six-factor model, and the best overall model, is:
> Index = 50.189 – 0.752 Great Commission + 0.707 Pentecostal/Charismatic
> (0.000) (0.000)                      (0.000)
> 
> -0.542 Ethnoreligion – 0.260 Protestant – 0.391 Jewish
> (0.000)               (0.000)            (0.003)
> -0.136 Christian.                                                                                        (8)
> (0.004)
> 
> with a final R2 of 0.727.
> 
> In each of the above, (5-8), the larger model is significantly (0.000) better than the next smaller one. All of
> the religions appearing, with the exception of the Pentecostal/Charismatic group, are positively associated with
> globalization. Also, in each case, the impact of a given percentage change in each group is (approximately) in the
> same order as the entry of the various religions. The Jewish weighting is larger than the Protestant weighting, but
> except for Israel, no nation has more than two percent Jews. The Pentecostal/Charismatic, Ethnoreligion, and
> Jewish groups do not significantly explain globalization when examined individually, but when the total variance in
> the Index is reduced by the other variables, these three each explain a significant portion of the remainder.
> 
> Section V: Conclusions
> 
> This paper examines the relationships between the Globalization Index and the worldwide distribution of
> various religions.
> 
> Simple regression results indicate that nations with higher percentages of Christians, Protestants, Great
> Commission Christians, the nonreligious, and atheists have significantly greater globalization. Muslims populations
> are negatively related to globalization. Great Commission Christians, by themselves, explain 45.8% of nations‟
> Globalization Index.
> 
> Stepwise regression results indicate that the denominational sets of Protestants, Christians, and Independent
> Christians explain 25.7% of the Globalization Index. The Christian types Great Commission Christians and
> Pentecostal-Charismatics explain 52.5%%. The greatest explanation of globalization is found from the percentages
> of Great Commission Christians, Pentecostal-Charismatics, Ethnoreligionists, Protestants, Jews, and total Christians.
> Together, these explain an astounding 72.7% of the variability in globalization across nations.
> 
> Although causality is not claimed, most of these world religions have existed for centuries or millennia and
> globalization is a relatively new concept, so it is logical to conclude that religion impacts globalization and not the
> other way around.
> 
> The ability of the final model to explain 72.7% of the total variance in the Globalization Index is startling.
> As far as the author can determine, no one has previously examined the connection between religion and the
> Globalization Index. 
> 
> References
> 
> 1.       “European union gets ready to grow.” (2002). Wall Street Journal, Oct. 10, 2002, pp. A12,13.
> 2.       Globalization index. (2002). Washington, D. C.: A. T. Kearney.
> 3.       Gray, J. (2002). “Globalization‟s last hurrah?” Foreign Policy, Jan/Feb. 2002, pp. 38-51.
> 4.       Lavin, D. (2002). “Globalization goes upscale.” Wall Street Journal, Feb. 1, 2002, p. A18.
> 5.       McMahon, D. (2002). “Born with a soul.” Wall Street Journal, Nov. 13, 2002, p. D10.
> 6.       Melloan, G. (2002). “Workers of the world are shedding their chains.” Wall Street Journal, Sep. 3, 2002, p. A21.
> 7.       “Skittish travelers cancel trips after bali bombing.” (2002) Wall Street Journal, Oct. 15, 02, pp. D1,5.
> 8.       World Christian Encyclopedia 2nd. (2001). Vol. 1, NYC: Oxford University Press.
>
> — *Globalization and Religion (Used by permission of the curator)*