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A Structural Model for Human Development, Does Maqāṣid al-Sharīʿah Matter!

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  • MILI, MEDHI

    (University of Sfax, ISG- Sousse-Tunisia)

Abstract

Islamic scholars agree that Islam have the ultimate goal of being a mercy to humanity. This is, in fact, the primary purpose of Maqāṣid al-Sharīʿah. To achieve this goal it is necessary to promote human well-being. The main purpose of this study is to test how Maqāṣids’ al-Sharīʿah contribute to promote human welfare. We use a Partial Least Squares-Path model that allows us to indentify the causal relationships between Maqāṣid al-Sharīʿah components proposed by al-Ghazali (Hifth al Nafs, Hifhd al Dīn, Hidh al ʿAql, Hidh al Māl, Hidh al ʿAql) and their impact on human well-being. Using a sample of 30 Islamic countries, our empirical results show that dimensions used for Maqāṣid al-Sharīʿah objectives are homogeneous and representative. Globally, we find that Maqāṣid al-Sharīʿah contribute significantly to human wellbeing in Islamic countries. We show that Hifth al Nafs and Hifhd al Dīn are the most significant components that affect human well-being. While we find evidence that Hidh al ʿAql didn’t have a significant impact on human development index. This may be due to other factors that can affect the quality of life in some Islamic countries such as the effect of natural resource wealth.

Suggested Citation

  • Mili, Medhi, 2014. "A Structural Model for Human Development, Does Maqāṣid al-Sharīʿah Matter!," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 22, pages 47-63.
    • Handle: RePEc:ris:isecst:0054
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    References listed on IDEAS

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    1. El-Gamal,Mahmoud A., 2009. "Islamic Finance," Cambridge Books, Cambridge University Press, number 9780521741262, October.
    2. Bassam Maali & Peter Casson & Christopher Napier, 2006. "Social reporting by islamic banks," Abacus, Accounting Foundation, University of Sydney, vol. 42(2), pages 266-289, June.
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    Cited by:

    1. Bahoo, Salman & Hassan, M. Kabir, 2019. "A model of the Islamic sovereign wealth fund," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 27, pages 2-22.
    2. Arman Mergaliyev & Mehmet Asutay & Alija Avdukic & Yusuf Karbhari, 2021. "Higher Ethical Objective (Maqasid al-Shari’ah) Augmented Framework for Islamic Banks: Assessing Ethical Performance and Exploring Its Determinants," Journal of Business Ethics, Springer, vol. 170(4), pages 797-834, May.
    3. Francesc Relano, 2023. "Ethical and Islamic Banking Compared from a Time-Based Perspective," Journal of Business Ethics, Springer, vol. 188(4), pages 795-805, December.

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    More about this item

    Keywords

    Maqāṣid al- Sharīʿah; human well- being; Hifth al Nafs; Hifhd al Dīn; Hidh al ʿAql; Hidh al Māl; Hidh al ʿAql; PLS-Path model .;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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