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Gaps in the Theory and Practice of Islamic Economics

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Abstract

After a generation of non-professional writers in Islamic economics, professional economists entered the stage with an important ambition, which has been to introduce a third alternative to humanity in addition to capitalism and socialism that would answer some of the inadequacies of each. Moreover, the analysis of human (individual and collective) behavior towards scarcity under the teachings of Islam was itself worth pursuing. The intellectual effort is yet to produce significant practices of Islamic economics. The exceptions include some application of Islamic finance that raises many questions, and a few applications of zakāh and awqāf. The most serious challenge of Islamic finance is the rise of products of ill repute that result from determined refusal to adhere to the decisions of the International Islamic Fiqh Academy. This paper identifies several gaps in Islamic economics and proposes ways to fill them, placing such responsibility squarely on Islamic economists.

Suggested Citation

  • Al-Jarhi, Mabid, 2013. "Gaps in the Theory and Practice of Islamic Economics," MPRA Paper 66716, University Library of Munich, Germany, revised 2013.
    • Handle: RePEc:pra:mprapa:66716
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    References listed on IDEAS

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    1. Al-Jarhi, Mabid, 1980. "A Monetary and Financial Structure for an Interest-Free Economy: Institutions, Mechanism & Policy," MPRA Paper 66741, University Library of Munich, Germany, revised 2004.
    2. Ezra Hauer & A. G. R. Bullen, 1976. "Books of Interest," Transportation Science, INFORMS, vol. 10(1), pages 102-109, February.
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    Cited by:

    1. Al-Jarhi, Mabid, 2014. "Towards an Economic Theory of Islamic Finance Regulation," MPRA Paper 66744, University Library of Munich, Germany, revised 2014.
    2. Al-Jarhi, Mabid Ali M. M., 2016. "An Economic Theory of Islamic Finance Regulation," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 24, pages 1-44.
    3. Islahi, Abdul Azim, 2013. "First vs. second generation Islamic economists: Deviations and differences in thoughts," MPRA Paper 68353, University Library of Munich, Germany, revised 2015.
    4. Saqib Muneer & azhar Ali & Rao Abrar Ahmad, 2017. "Impact of Financing on Small and Medium Enterprises (SMEs) Profitability with Moderating Role of Islamic Finance," Information Management and Business Review, AMH International, vol. 9(2), pages 25-32.

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    More about this item

    Keywords

    economics; finance; Shari'ah; securitization; Sukuk; monetary policy;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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