Religiosity and Growth Revisited: Estimating a Causal E/ect Jean Francois Carpantier y Anastasia Litina z February 13, 2014 Abstract Exploiting variations in the inherited component of religiosity of migrants currently residing in the US, this research uncovers the casual e/ect of religiosity on the standard of living. The analysis establishes that religiosity at the country of origin has a long lasting e/ect on the religiosity of migrants. Using a panel of countries for the period 1935-2000 and exploiting the inherited religiosity of migrants, the empirical ndings suggest that i) church attendance has a positive impact on economic outcomes; ii) religious beliefs in the existence of god, hell, heaven and miracles have no e/ect on economic outcomes, and iii) stronger faith is associated with prosperity. Notably, the positive e/ect of religious participation and of stronger faith on economic outcomes operates via the creation of social capital and the development of traits such as hard work that are conducive to growth. Keywords : Religiosity, Growth, Beliefs, Migration, Culture JEL Classication Numbers : A1; Z12; Z13 The authors are grateful to the participants of the seminar series of CREA- University of Luxembourg and of the Athens University of Economics and Business for their helpful comments and suggestions. y University of Luxembourg, Faculty of Law, Economics and Finance, 148, Avenue de la Faiencerie, L - 1511 Luxembourg (e-mail: Jean-Francois.carpantier@uni.lu) z University of Luxembourg, Faculty of Law, Economics and Finance, 148, Avenue de la Faiencerie, L - 1511 Luxembourg (e-mail: anastasia.litina@uni.lu)