PurposeThis paper aims to explain the nature of the economic agent in Islamic economics. He is co... more PurposeThis paper aims to explain the nature of the economic agent in Islamic economics. He is commonly referred to as Homo Islamicus.Design/methodology/approachThis is done by deriving the concept from the Qurʾān as the primary epistemological source in Islamic economics. The paper, thus, attempts to explore the message of the Qurʾān and internalize its concepts and values in their totality into the conception of the economic agent from an Islamic perspective.FindingsThe paper brings an insight regarding the nature of the economic agent in Islamic perspective. The concept of the economic agent that is developed from the Qurʾānic teachings will be useful in developing assumptions and theories in Islamic economics.Research limitations/implicationsThis paper explores the normative behavioral framework of man from the Qurʾānic perspective (i.e. what is expected of man) in order to serve as the basis on which assumptions, concepts and theories could be produced and applied in real life....
Journal of the International Institute of Islamic Thought and Civilization, 2015
The question of ethics in economic development has taken centre stage in recent years. The recurr... more The question of ethics in economic development has taken centre stage in recent years. The recurring financial crises and the devastation of the environment provide opportunities to revisit the issue of re-introducing ethics into economics. Even in mainstream academic discourse, global scholarship is searching for appropriate ethical foundations to be the basis of human behavior in dealing with nature while at the same time enabling man to enjoy maximum well-being. Mainstream neoclassical economics is criticized for not having a holistic perspective that would be the basis of genuine sustainable development. This criticism emanates primarily from the microfoundations of neoclassical economics that idealize individual rationality within a framework that glorifies self-interest/selfish behavior and utility maximization postulates. In this paper, we attempt to investigate the Islamic perspective on the relationship of man and nature, vis-a-vis the framework of an ethics-based approach ...
International Journal of Economics, Management and Accounting, 2011
This paper argues that research and publications in the area of methodology of Islamic economics... more This paper argues that research and publications in the area of methodology of Islamic economics is very significant for a meaningful development of the discipline. Although the discussion on methodology of Islamic economics in contemporary Islamic economics literature is rather limited, this paper reviews the works of selected scholars who have attempted to present works on ‘methodology’ and their approach to the process of theory building in Islamic economics. The paper then presents some implications of these views based on the position that methodology investigates the criteria, rationalizations, arguments and justifications used in theory appraisal as well as evaluating the reliability of theories, this paper concludes that greater resources, both human and financial, need to be channeled to developing uI?l al-iqtiI?d, a fundamental, but vastly, neglected area of research in contemporary Islamic economics. JEL Classification: B41, B49, B59, Z12 Key words: Methodology...
International Journal of Academic Research in Business and Social Sciences, 2021
Microfinance is one of the financial instruments for small and medium entrepreneurs to run a busi... more Microfinance is one of the financial instruments for small and medium entrepreneurs to run a business. The constrains to obtain a capital often involving underprivileged entrepreneurs because it is difficult to get a fund from the financial institutions. Currently in Malaysia, Amanah Ikhtiar Malaysia (AIM) and TEKUN National are among the institutions that offer the native to obtain the business capital. Otherwise, the State Zakat Institution provides an assistance as a business capital by mean of "one-off" which does not require the borrowers to make a repayment at the end of the day. From a Muslim entrepreneur's perspective, micro finance that offered is consisting element of riba and it is prohibited in Islam. For that reason, seem that the financial assistance provided by zakat institutions is seen as unproductive and elective. Thus, micro-finance through zakat funds is an alternative proposition for unprivileged entrepreneurs. This article aims to analyze the readiness of zakat institutions in Malaysia to apply micro finance from zakat funds. The study is done using the case study method by conducting a semi-structured interview with 5 micro finance officers and 5 zakat officers from Zakat institutions. This study found that there is a tendency to apply micro finance from the zakat fund. In other words, zakat institutions in Malaysia are ready to implement zakat distribution by mean of micro finance. Hopefully, this study will be served as a reference for zakat institutions especially in Malaysia to practice micro finance from the zakat funds.
International Journal of Pluralism and Economics Education, 2015
Islamic economics is challenged in whether it can be called a discipline in the sense of having a... more Islamic economics is challenged in whether it can be called a discipline in the sense of having a clear subject-matter, methodology to appraise theories, a well-organised body of knowledge and systematic accumulation of knowledge. Islamic economics is still in the formative stage as a discipline, and many fundamental issues need to be addressed by the scientific community. This paper identifies several challenges to be answered by the Islamic economic scientific community in order to develop a discipline of Islamic economics. Embarking from the Islamic worldview that provides foundations in our understanding of economic phenomena, we must develop the conceptual foundations, conceptual scheme, key-terminologies, methodology to appraise and evaluate theory, and an Islamic ethics framework. The answer to those challenges will determine the scientific direction of Islamic economics, ensure a sustainable growth of knowledge and expedite the evolutional process of Islamic economics becoming a distinct discipline.
is among the few 20 th Century scholars who attempt to derive ethical principles of Islam from th... more is among the few 20 th Century scholars who attempt to derive ethical principles of Islam from the Qur´Én by applying semantic analysis of Qur´Énic terms/concepts. Can his approach contribute to the development of an Islamic science in general, and of Islamic economics in particular, especially in the endeavour to establish the ethical principles of Islamic economics? In this paper, we scrutinise Izutsu's two works on God and Man in the Qur´an and Ethico-Religious Concepts in the Qur´an (2004) to derive relevant Islamic values from the Qur´Én that could form the ethical base of Islamic economic theories as well as policy prescriptions. In particular, the concept of man as khalÊfah-Ñabd is seen as having significant ethical implications on how economics and economic decision-making would be developed.
ABSTRACT Purpose ‐ This paper attempts to investigate the conceptual foundations of methodologica... more ABSTRACT Purpose ‐ This paper attempts to investigate the conceptual foundations of methodological inquiry in Islamic economics. The paper aims to develop criteria of acceptance and rejection of a theory and providing rationalizations and guidelines in the process of theory appraisal and evaluation. Design/methodology/approach ‐ The literature on Islamic economics especially in the area of methodology of Islamic economics, both in English and Arabic, is reviewed critically and used in the attempt of constructing the criteria of theory appraisal in Islamic economics. Findings ‐ The paper explicates two criteria of theory appraisal in Islamic economics, namely the internal-integrity (doctrinal integrity, logical integrity and factual integrity) and relational-unity (of doctrine and practical realities, ideals/goals and factual experiences, values and facts, normative and positive dimensions, a priori and a posteriori). Research limitations/implications ‐ The paper is based on conceptual explorations of literature in the area of methodology of Islamic economics. This is a conceptual paper, so it did not employ any empirical analysis. Practical implications ‐ The findings of this paper will give insights of the criteria to distinguish truth over false notions in theories, between valid theories and invalid ones as well as the acceptance or rejection of theory in Islamic economics theory appraisal. With those criteria of theory, a unified discipline of Islamic economics, which is based on doctrinal, logical on testable foundations in a real typical Muslim society can be produced. Originality/value ‐ The paper proposes criteria and purpose of theory appraisal in Islamic economics which is lacking in the discussion of methodology of Islamic economics literature. Those criteria and purpose in theory appraisal and evaluation in a methodological unity of Islamic economics suggest a new approach in dealing with revelation, intellectual reasoning and facts observation in order to produce a coherent Islamic economic theory.
The emergence of Islamic finance as a system of thought and practice is timely in the midst of wo... more The emergence of Islamic finance as a system of thought and practice is timely in the midst of world crisis and the uncertain proposals for solving it. It is hoped that Islamic finance offers a coherent perspective for understanding real economic problems as well as a genuine alternative to the very foundations of how economics and finance should be managed to actualize human prosperity. In addressing those expectations and challenges, sufficient attention to the foundations should be given to develop solid conceptual scheme of a new finance in Islamic perspective and to resolve the tensions in the current development. This paper attempts to discuss the foundations of Islamic finance and the requirements in developing Islamic finance from the basic principles of maqāṣid al-Sharī'ah (the objectives of Sharī'ah). Islamic finance, in this perspective,must realize its full potential as a system, not merely a lawful means in doing financial business or a stopgap means of surviving the crisis. It must go beyond that to provide the guidelines for managing a good economy, stimulating growth and development, realizing socio-economic justice and promoting employment and stability as implied in the objective of Sharī'ah (maqāṣid al-Sharī'ah ).
ABSTRACT Purpose ‐ This paper attempts to investigate the conceptual foundations of methodologica... more ABSTRACT Purpose ‐ This paper attempts to investigate the conceptual foundations of methodological inquiry in Islamic economics. The paper aims to develop criteria of acceptance and rejection of a theory and providing rationalizations and guidelines in the process of theory appraisal and evaluation. Design/methodology/approach ‐ The literature on Islamic economics especially in the area of methodology of Islamic economics, both in English and Arabic, is reviewed critically and used in the attempt of constructing the criteria of theory appraisal in Islamic economics. Findings ‐ The paper explicates two criteria of theory appraisal in Islamic economics, namely the internal-integrity (doctrinal integrity, logical integrity and factual integrity) and relational-unity (of doctrine and practical realities, ideals/goals and factual experiences, values and facts, normative and positive dimensions, a priori and a posteriori). Research limitations/implications ‐ The paper is based on conceptual explorations of literature in the area of methodology of Islamic economics. This is a conceptual paper, so it did not employ any empirical analysis. Practical implications ‐ The findings of this paper will give insights of the criteria to distinguish truth over false notions in theories, between valid theories and invalid ones as well as the acceptance or rejection of theory in Islamic economics theory appraisal. With those criteria of theory, a unified discipline of Islamic economics, which is based on doctrinal, logical on testable foundations in a real typical Muslim society can be produced. Originality/value ‐ The paper proposes criteria and purpose of theory appraisal in Islamic economics which is lacking in the discussion of methodology of Islamic economics literature. Those criteria and purpose in theory appraisal and evaluation in a methodological unity of Islamic economics suggest a new approach in dealing with revelation, intellectual reasoning and facts observation in order to produce a coherent Islamic economic theory.
Abstract: Toshihiko Izutsu (1914-1993) is among the few 20th Century scholars who attempt to deri... more Abstract: Toshihiko Izutsu (1914-1993) is among the few 20th Century scholars who attempt to derive ethical principles of Islam from the Qur´Én by applying semantic analysis of Qur´Énic terms/concepts. Can his approach contribute to the development of an Islamic science in ...
PurposeThis paper aims to explain the nature of the economic agent in Islamic economics. He is co... more PurposeThis paper aims to explain the nature of the economic agent in Islamic economics. He is commonly referred to as Homo Islamicus.Design/methodology/approachThis is done by deriving the concept from the Qurʾān as the primary epistemological source in Islamic economics. The paper, thus, attempts to explore the message of the Qurʾān and internalize its concepts and values in their totality into the conception of the economic agent from an Islamic perspective.FindingsThe paper brings an insight regarding the nature of the economic agent in Islamic perspective. The concept of the economic agent that is developed from the Qurʾānic teachings will be useful in developing assumptions and theories in Islamic economics.Research limitations/implicationsThis paper explores the normative behavioral framework of man from the Qurʾānic perspective (i.e. what is expected of man) in order to serve as the basis on which assumptions, concepts and theories could be produced and applied in real life....
Journal of the International Institute of Islamic Thought and Civilization, 2015
The question of ethics in economic development has taken centre stage in recent years. The recurr... more The question of ethics in economic development has taken centre stage in recent years. The recurring financial crises and the devastation of the environment provide opportunities to revisit the issue of re-introducing ethics into economics. Even in mainstream academic discourse, global scholarship is searching for appropriate ethical foundations to be the basis of human behavior in dealing with nature while at the same time enabling man to enjoy maximum well-being. Mainstream neoclassical economics is criticized for not having a holistic perspective that would be the basis of genuine sustainable development. This criticism emanates primarily from the microfoundations of neoclassical economics that idealize individual rationality within a framework that glorifies self-interest/selfish behavior and utility maximization postulates. In this paper, we attempt to investigate the Islamic perspective on the relationship of man and nature, vis-a-vis the framework of an ethics-based approach ...
International Journal of Economics, Management and Accounting, 2011
This paper argues that research and publications in the area of methodology of Islamic economics... more This paper argues that research and publications in the area of methodology of Islamic economics is very significant for a meaningful development of the discipline. Although the discussion on methodology of Islamic economics in contemporary Islamic economics literature is rather limited, this paper reviews the works of selected scholars who have attempted to present works on ‘methodology’ and their approach to the process of theory building in Islamic economics. The paper then presents some implications of these views based on the position that methodology investigates the criteria, rationalizations, arguments and justifications used in theory appraisal as well as evaluating the reliability of theories, this paper concludes that greater resources, both human and financial, need to be channeled to developing uI?l al-iqtiI?d, a fundamental, but vastly, neglected area of research in contemporary Islamic economics. JEL Classification: B41, B49, B59, Z12 Key words: Methodology...
International Journal of Academic Research in Business and Social Sciences, 2021
Microfinance is one of the financial instruments for small and medium entrepreneurs to run a busi... more Microfinance is one of the financial instruments for small and medium entrepreneurs to run a business. The constrains to obtain a capital often involving underprivileged entrepreneurs because it is difficult to get a fund from the financial institutions. Currently in Malaysia, Amanah Ikhtiar Malaysia (AIM) and TEKUN National are among the institutions that offer the native to obtain the business capital. Otherwise, the State Zakat Institution provides an assistance as a business capital by mean of "one-off" which does not require the borrowers to make a repayment at the end of the day. From a Muslim entrepreneur's perspective, micro finance that offered is consisting element of riba and it is prohibited in Islam. For that reason, seem that the financial assistance provided by zakat institutions is seen as unproductive and elective. Thus, micro-finance through zakat funds is an alternative proposition for unprivileged entrepreneurs. This article aims to analyze the readiness of zakat institutions in Malaysia to apply micro finance from zakat funds. The study is done using the case study method by conducting a semi-structured interview with 5 micro finance officers and 5 zakat officers from Zakat institutions. This study found that there is a tendency to apply micro finance from the zakat fund. In other words, zakat institutions in Malaysia are ready to implement zakat distribution by mean of micro finance. Hopefully, this study will be served as a reference for zakat institutions especially in Malaysia to practice micro finance from the zakat funds.
International Journal of Pluralism and Economics Education, 2015
Islamic economics is challenged in whether it can be called a discipline in the sense of having a... more Islamic economics is challenged in whether it can be called a discipline in the sense of having a clear subject-matter, methodology to appraise theories, a well-organised body of knowledge and systematic accumulation of knowledge. Islamic economics is still in the formative stage as a discipline, and many fundamental issues need to be addressed by the scientific community. This paper identifies several challenges to be answered by the Islamic economic scientific community in order to develop a discipline of Islamic economics. Embarking from the Islamic worldview that provides foundations in our understanding of economic phenomena, we must develop the conceptual foundations, conceptual scheme, key-terminologies, methodology to appraise and evaluate theory, and an Islamic ethics framework. The answer to those challenges will determine the scientific direction of Islamic economics, ensure a sustainable growth of knowledge and expedite the evolutional process of Islamic economics becoming a distinct discipline.
is among the few 20 th Century scholars who attempt to derive ethical principles of Islam from th... more is among the few 20 th Century scholars who attempt to derive ethical principles of Islam from the Qur´Én by applying semantic analysis of Qur´Énic terms/concepts. Can his approach contribute to the development of an Islamic science in general, and of Islamic economics in particular, especially in the endeavour to establish the ethical principles of Islamic economics? In this paper, we scrutinise Izutsu's two works on God and Man in the Qur´an and Ethico-Religious Concepts in the Qur´an (2004) to derive relevant Islamic values from the Qur´Én that could form the ethical base of Islamic economic theories as well as policy prescriptions. In particular, the concept of man as khalÊfah-Ñabd is seen as having significant ethical implications on how economics and economic decision-making would be developed.
ABSTRACT Purpose ‐ This paper attempts to investigate the conceptual foundations of methodologica... more ABSTRACT Purpose ‐ This paper attempts to investigate the conceptual foundations of methodological inquiry in Islamic economics. The paper aims to develop criteria of acceptance and rejection of a theory and providing rationalizations and guidelines in the process of theory appraisal and evaluation. Design/methodology/approach ‐ The literature on Islamic economics especially in the area of methodology of Islamic economics, both in English and Arabic, is reviewed critically and used in the attempt of constructing the criteria of theory appraisal in Islamic economics. Findings ‐ The paper explicates two criteria of theory appraisal in Islamic economics, namely the internal-integrity (doctrinal integrity, logical integrity and factual integrity) and relational-unity (of doctrine and practical realities, ideals/goals and factual experiences, values and facts, normative and positive dimensions, a priori and a posteriori). Research limitations/implications ‐ The paper is based on conceptual explorations of literature in the area of methodology of Islamic economics. This is a conceptual paper, so it did not employ any empirical analysis. Practical implications ‐ The findings of this paper will give insights of the criteria to distinguish truth over false notions in theories, between valid theories and invalid ones as well as the acceptance or rejection of theory in Islamic economics theory appraisal. With those criteria of theory, a unified discipline of Islamic economics, which is based on doctrinal, logical on testable foundations in a real typical Muslim society can be produced. Originality/value ‐ The paper proposes criteria and purpose of theory appraisal in Islamic economics which is lacking in the discussion of methodology of Islamic economics literature. Those criteria and purpose in theory appraisal and evaluation in a methodological unity of Islamic economics suggest a new approach in dealing with revelation, intellectual reasoning and facts observation in order to produce a coherent Islamic economic theory.
The emergence of Islamic finance as a system of thought and practice is timely in the midst of wo... more The emergence of Islamic finance as a system of thought and practice is timely in the midst of world crisis and the uncertain proposals for solving it. It is hoped that Islamic finance offers a coherent perspective for understanding real economic problems as well as a genuine alternative to the very foundations of how economics and finance should be managed to actualize human prosperity. In addressing those expectations and challenges, sufficient attention to the foundations should be given to develop solid conceptual scheme of a new finance in Islamic perspective and to resolve the tensions in the current development. This paper attempts to discuss the foundations of Islamic finance and the requirements in developing Islamic finance from the basic principles of maqāṣid al-Sharī'ah (the objectives of Sharī'ah). Islamic finance, in this perspective,must realize its full potential as a system, not merely a lawful means in doing financial business or a stopgap means of surviving the crisis. It must go beyond that to provide the guidelines for managing a good economy, stimulating growth and development, realizing socio-economic justice and promoting employment and stability as implied in the objective of Sharī'ah (maqāṣid al-Sharī'ah ).
ABSTRACT Purpose ‐ This paper attempts to investigate the conceptual foundations of methodologica... more ABSTRACT Purpose ‐ This paper attempts to investigate the conceptual foundations of methodological inquiry in Islamic economics. The paper aims to develop criteria of acceptance and rejection of a theory and providing rationalizations and guidelines in the process of theory appraisal and evaluation. Design/methodology/approach ‐ The literature on Islamic economics especially in the area of methodology of Islamic economics, both in English and Arabic, is reviewed critically and used in the attempt of constructing the criteria of theory appraisal in Islamic economics. Findings ‐ The paper explicates two criteria of theory appraisal in Islamic economics, namely the internal-integrity (doctrinal integrity, logical integrity and factual integrity) and relational-unity (of doctrine and practical realities, ideals/goals and factual experiences, values and facts, normative and positive dimensions, a priori and a posteriori). Research limitations/implications ‐ The paper is based on conceptual explorations of literature in the area of methodology of Islamic economics. This is a conceptual paper, so it did not employ any empirical analysis. Practical implications ‐ The findings of this paper will give insights of the criteria to distinguish truth over false notions in theories, between valid theories and invalid ones as well as the acceptance or rejection of theory in Islamic economics theory appraisal. With those criteria of theory, a unified discipline of Islamic economics, which is based on doctrinal, logical on testable foundations in a real typical Muslim society can be produced. Originality/value ‐ The paper proposes criteria and purpose of theory appraisal in Islamic economics which is lacking in the discussion of methodology of Islamic economics literature. Those criteria and purpose in theory appraisal and evaluation in a methodological unity of Islamic economics suggest a new approach in dealing with revelation, intellectual reasoning and facts observation in order to produce a coherent Islamic economic theory.
Abstract: Toshihiko Izutsu (1914-1993) is among the few 20th Century scholars who attempt to deri... more Abstract: Toshihiko Izutsu (1914-1993) is among the few 20th Century scholars who attempt to derive ethical principles of Islam from the Qur´Én by applying semantic analysis of Qur´Énic terms/concepts. Can his approach contribute to the development of an Islamic science in ...
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