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Towards the Construction of a Contemporary Islamic Educational Theory
Fathi Malkawi
Islamization of Knowledge: Conceptual Background, Vision and Tasks
Salisu Shehu
Economic Guidelines in the Qur'an
S.M. Hasanuz Zaman
Contribution of Islamic Thought to Modern Economics
Misbah Oreibi
An Introduction to Islamic Economics
Muhammad Akram Khan
Islamic Thought and Culture
Isma'il R. al Faruqi
Islamization of Knowledge: Background, Models and the Way Forward
Malam Sa'idu Sulaiman
| Modelling the Economic Growth of an Islamic Economy |
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M. Ramzan Akhtar In an Islamic economy economic growth is not an end in itself, but rather a means of promoting the citizenry's good life. Growth depends upon several factors, among them a consistent increase in the amount of physical goods and services produced over a given period of time. This is usually taken as an index of economic growth. Adopting the same index, this paper asks: What factor explains economic growth in an Islamic economy? For this purpose, the paper refers to the Islamic economy of Madinah, which saw substantial expansion in all directions during the reigns of the Prophet and his four immediate political successors.This paper gives an answer based on the hypothesis that both physical and moral factors are instrumental in causing economic growth in an Islamic economy. This hypothesis is quite different from that of secular economics, which views economic growth only in terms of physical factors. Such an explanation has been found inadequate, however, as empirical studies on American data have shown that just over half of all output growth is explained by physical factors. Denison calls the unexplained part "the measure of our ignorance" (Branson and Litvack 1981). Many Muslim economists have discussed the role of moral factors in various forms (i.e., integrity, cultural will, and calls to the Muslim masses to regain their past glory). This paper, however, views the role of moral factors in terms of the bounty of God (fadl Allah). It is argued that this factor influenced economic growth through both autonomous and induced channels operating in institutional factors (i.e., the mosque and the state) and the level of God-consciousness (taqwa) in an Islamic society. The hypothesis is examined theoretically, because statistical data for empirical analysis is not available. The paper relies on the Qur'an and the Sunnah to support its reasoning. An aggregate production function is employed to explain the contribution of physical and moral factors to the growth process. Analytical results show that moral factors make a positive contribution to both income and output growth. The model generates important implications. Contemporary Muslim countries, in the context of this paper, can accelerate the role of economic growth by the greater use of moral factors. Hence their growth strategies should recognize the importance of this factor. Some light is also shed on the puzzle of secular economists concerning the unexplained part of economic growth mentioned above, which this paper posits can be attributed to the bounties of God by way of a divine test.
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The International Institute of Islamic Thought (IIIT) is pleased to announce its Summer Students Program for 2010, which will run for six weeks between Monday, June 28 and Friday, August 6, 2010. The program is designed for senior undergraduate and graduate students who are majoring in the humanities or social science disciplines and who have a particular interest in developing their knowledge and research skills in the core areas of Islamic studies...more
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