Islamic Economics and Prospects for Theoretical and Empirical Research
18 Pages Posted: 24 Oct 2017
Date Written: October 23, 2017
This paper examines the nature, scope and methodology of Islamic economics, and draws attention to some possibilities for theoretical and empirical research in this field. Islamic economics is defined as the systematic study of the problem of allocation of resources, production of goods and services and distribution of output, income and wealth in an economy in the light of the Qur’ān and the Sunnah. It has relevance for not only Muslims but also others interested in durable solutions to problems of financial crises, inflation, unemployment, poverty and economic inequalities. The discipline is concerned with the description (of ground realities) and prescription (of solutions for economic issues) in the light of the leads in the Qur’ān and the Sunnah. The Sharīʿah basis of Islamic economics, with a supportive role for fiqh, holds the key in building Islamic economics. The approach recommended for this purpose is reconstruction of Islamic economics rather than Islamization of economics. On the theoretical side, this paper lays emphasis on basic research for strengthening the theory of Islamic economics to fill the knowledge gap on, among other things, Islamic economic system, Islamic economy, the Sharīʿah-based transactions matrix, nature and role of government in modern times and review of economic policy agenda. On the empirical side, it highlights some matters related to data and empirical work.
Keywords: Islamic economics, conventional economics, mainstream economics, Qur’ān, Sunnah, ḥadīth, Sharīʿah, fiqh
JEL Classification: A12, B49, B59
Suggested Citation: Suggested Citation