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The existing literature on Islamic economics has not undergone any of the processes of verification or falsification. It is mostly restatement of the postulates as found in the Qur'an or hadith. The literature on methodology of Islamic economics is either superfluous, or ambiguous or confusing. It does not help in transforming the Islamic economic teachings into a social science. For developing Islamic economics as a social science, we must understand the primary sources in a contemporary context; formulate hypotheses based on that understanding and present these hypotheses for validation through testing. The paper illustrates the proposed methodology with some examples. For making this methodology a going concern, several basic steps would be required. The paper enumerates those steps also. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to explain the structure of Islamic monetary transformation into 100 percent reserve requirement monetary system in terms of the foundational epistemology of the unity of divine knowledge (tawhid). This approach is a scholarly originality in the field of epistemological formalism concerning Islamic theory and perspectives in economic reasoning in comparative perspectives.Design/methodology/approach The role of micro-money pursuing projects and real economic exchange relations is shown to arise by a natural causality in the ethical social economy (SE). This results in a microeconomic perspective of the quantity theory of money with ethical and social implications. A comparative study of endogenous money in the quantity theory of money points out significant differences between the theory of endogenous money in Islam and mainstream methodologies. A formal model of micro-money and its organismic endogenous relationship with the real economy is formulated with the goal of realizing social well-being, economic stabilization, and sustainability of development regimes.Findings This is a conceptual paper, though with the potential for continued work in applying the theory of micro-money in the Islamic methodological perspective of unity of knowledge. This is an original contribution of this paper. Islamic economists have not been able to produce a rigorous theory of micro-money. They have also not been able to situate the study of Islamic economics with its specific contribution to the field of the nature of money in project-specific financing of Islamic projects by the money-finance-real economy inter-causal relations. Thus, the findings of this paper, though of the conceptual nature, open doors to a vast field of methodological development and its application to the problem of micro-money modeling. Such a conceptual finding arising from the methodological theory of unity of knowledge and applied to the topic of micro-money along with some examples of potentiality of these approaches constitutes a vastly original field of findings as contribution. Thereby, an analytical model is established in the Islamic social economy (ISE) perspective. The model is used to explain monetary transmission and functioning of monetary policy with instruments that avoid interest rate and comply with Islamic financing requirements. The resulting model of money, finance, and real economy (MFE) systemic interrelationship in reference to the epistemology of unity of knowledge leads into the construction of a 100 percent reserve requirement monetary system with the gold-backed micro-money as currency complementing real economic transactions.Research limitations/implications The present paper is of a conceptual type based on the essential ontological and epistemological foundation of Islamic social and economic thought and bearing a deeply scientific implication. The conceptual part of this paper becomes a study in the foundations. The second part follows into the study of application in the real world of micro-money in terms of financing projects. Micro-money pursues projects in the Islamic economy due to its very nature of ethical and social choices. The paper shows that such a micro-money transmission is realized by the money-finance-real economy integrated model. Thereby, some real-world examples of such transformations are given. All these together substantiate the conceptual-analytical-empirical nature of the study conducted.Practical implications The development of the micro-money transmission system of generalized circular causation interrelations between MFE activities as a return to 100 percent reserve requirement monetary system with the gold standard is the profound theory that has been propounded. Its applied perspectives are implied through the MFE-model wherein micro-money pursues social projects. Furthermore, the possibility and practicality of such a conceptual model of micro-money and its transmission mechanism in the real economy are established by real-world examples of kinds of micro-money that are found to circulate or are recommended by some studies in the literature.Social implications The conceptual part of the paper presents a model of generalized epistemological model of unity of knowledge characterizing the MFE circular causal interrelations as the organismic meaning of social ethics and evolutionary learning. The social implications are the epistemic foundations of the derived model in the midst of choices of life-fulfillment projects that micro-money finances and the economy sustain.Originality/value This is an original paper premised on the general and the specific Islamic epistemological criterion of unity of knowledge as a generalized system theory. It is now particularized to the case of money and real economy by using the Islamic perspective of creating conditions to regenerate resources continuously in SE with ethical implications. The paper is equally informative to all who like to understand the social and ethical nature of endogenous relations between money and the real economy as two great institutions of the national economy. These together bestow well-being to the society at large in the construction of SE. Specific attention in this regard is given to ISE. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to explore the opportunities of using halal regulation and certification as a mechanism for applying Islamic business ethics in contemporary world. Design/methodology/approach – The current practices of halal regulation and certification and literature on Islamic ethics were reviewed, to identify a practical approach for Islamic business ethics. Findings – Islam allows and accepts different levels of ethical commitment. A multi-level Islamic ethics framework and a multi-level halal certification approach are proposed to facilitate the implementation of Islamic business ethics in a relative context. Two major developments can enrich halal business practices: harmonization of global standards and governance structure, and integrating responsibility and ethical issues in halal standards. Practical implications – The proposed framework and developments can enrich halal regulation and certification practice. Originality/value – The paper emphasizes the importance of flexibility and adaptability in Islamic business ethics implementation, and proposes a new framework and approach to apply Islamic business ethics. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to critique the philosophical underpinnings of the growing field of Islamic economics. Design/methodology/approach – A critical and comparative review of Islamic economics texts written by key proponents during the last eight decades is undertaken. The origins of this nascent science are traced and factors that gave impetus to its development examined. The different characterisations of the discipline as it has developed within the broader socio-political context are contrasted. Findings – The proponents of Islamic economics have had little success in shaping a distinctive paradigm for their discipline, beyond arguing that it is underpinned by a strong moral ethic. By and large, its epistemological roots have remained firmly within the framework of rationalism/empiricism and methodological individualism. Consequently, Islamic economics has not been able to shed its neoclassical moorings, the very paradigm it originally set out to replace. Several of the contradictions apparent in the discipline are discussed. Islamic economists, recognising that their mission has remained unfulfilled, have variously suggested different approaches to regenerate the process and chart the way forward. These propositions are examined and evaluated. Research limitations/implications – If Islamic economics is to fulfil its raison d'être, that is, articulate a coherent theoretical paradigm and demonstrate its relevance to the real economy, its proponents must resolve its theoretical and practical difficulties by clarifying its Weltanschauung and developing an appropriate content and form. Originality/value – This study evaluates how the discipline has developed and exposes its inherent contradictions. These inconsistencies are identified and explained at the foundational level, highlighting where and why they have occurred. [ABSTRACT FROM AUTHOR]

Maloney, Civan and Maloney (Public Choice, , this volume) extend the existing literature on the economics of religion in several important ways. First, they define the religious good. They then distinguish a sectarian break from a schism, provide some analysis of schisms in the Christian world, and finally, and most interestingly, provide a summary of the religious practices and schisms in Islam. The two main strengths of the paper, and the most promising paths for future research, lie in the definition of the religious good and in the exploration of Islamic practices. Maloney, Civan and Maloney offer a novel perspective from which light might be reflected back upon Christian schisms. [ABSTRACT FROM AUTHOR]

This paper argues that in contemporary Indonesia development is increasingly being posed as an ethical, rather than a political and economic, problem. I demonstrate this change by describing one of several moderate Islamic ‘spiritual reform’ movements that are active in state-owned enterprises, government offices, and private companies. These initiatives combine business management principles and techniques from popular life-coaching seminars with Muslim practice. I term this assemblage ‘market Islam’ and contrast it with what has been labelled ‘civil Islam’. I argue that market Islam seeks less to create commensurability between Islam and democracy and is instead designed to merge Muslim religious practice and capitalist ethics. Market Islam is thus less concerned with state power and the articulation of politics and religion, and more focused on eliciting the ethical dispositions conducive to economic liberalism. It is thus designed to create a form of effective self-management by making ‘people better from the inside’ and ‘breaking boundaries’ that are seen to afflict Indonesian development, such as those between Indonesia and other countries, between religion and work, and between individuals and the corporations for which they work. I conclude that market Islam is neither fundamentalist nor conservative, but rather involves breaking a series of boundaries that were constitutive of Indonesian modernity. Résumé Le présent article soutient que dans l’Indonésie contemporaine, le développement est de plus en plus présenté comme un problème éthique plus que politique et économique. L’auteur met en évidence ce changement en décrivant l’un des multiples mouvements de « réforme spirituelle » islamiques modérés à l’œuvre dans les entreprises d’État, les administrations et les sociétés privées. Ces initiatives combinent les principes et techniques de gestion d’entreprise issues de séminaires de coaching populaires avec la pratique de l’islam. L’auteur désigne cet assemblage par l’appellation « islam de marché» et le confronte à l’islam dit « civil ». Il affirme que l’islam de marché essaie non pas de créer des repères communs entre l’islam et la démocratie, mais de fusionner pratique religieuse musulmane et éthique capitaliste. L’islam de marché s’intéresse donc moins à la puissance de l’État et à l’articulation de la politique et de la religion qu’à la mise en place des dispositions éthiques conduisant au libéralisme économique. Il est donc conçu pour créer une forme d’autogestion efficace, en « rendant les gens meilleurs de l’intérieur » et en « brisant les barrières » qui grèvent le développement de l’Indonésie : barrières entre l’Indonésie et les autres pays, entre religion et travail, entre les individus et les entreprises pour lesquelles ils travaillent. L’auteur conclut que l’islam de marché n’est ni fondamentaliste ni conservateur, mais vise plutôt à abattre diverses cloisons inhérentes à la modernité en Indonésie. [ABSTRACT FROM AUTHOR]

Purpose - The paper aims to offer a new perspective on the strictly microeconomic nature of all of Islamic economics. Writers in this field continue to work in the mainstream tradition without noticing the micro-interface of the theoretical nature of Islamic economics. This paper aims to address this issue. Design/methodology/approach - The paper provides a comparative study of received literature in the history of economic thought and contrasts the ethical foundations of Islamic economics from the mainstream dichotomy between microeconomic and macroeconomic parts. Findings - There is a cogent microeconomic foundation of Islamic economics for the economy-wide treatment of ethical economic issues and problems including the policy framework. Research limitations/implications - This is a theoretical exploration. The empirical part is yet to be expanded upon. Practical implications - The paper has practical implications for graduate students on policy formulation and economic theorizing, by making them analytically aware on the extensive relevance of microeconomics in the building block of ethical content of economic theory, policy and institutions. Originality/value - The paper presents original thinking along lines of microeconomic foundations of macroeconomic theory from the social and ethical vantage points of Islamic economics and finance that writers in this field should not ignore. The paper is meant for serious students and academics of economic theory and ethical social policy embedded in the economic treatment. [ABSTRACT FROM AUTHOR]

International marketing practices, embedded in a strong ethical doctrine, can play a vital role in raising the standards of business conduct worldwide, while in no way compromising the quality of services or products offered to customers, or surrendering the profit margins of businesses. Adherence to such ethical practices can help to elevate the standards of behavior and thus of living, of traders and consumers alike. Against this background, this paper endeavors to identify the salient features of the Islamic framework of International Marketing Ethics. In particular, it highlights the capabilities and strengths of this framework in creating and sustaining a strong ethical international marketing culture. At the heart of Islamic marketing is the principle of value-maximization based on equity and justice (constituting just dealing and fair play) for the wider welfare of the society. Selected key international marketing issues are examined from an Islamic perspective which, it is argued, if adhered to, can help to create a valueloaded global ethical marketing framework for MNCs in general, and establish harmony and meaningful cooperation between international marketers and Muslim target markets in particular. [ABSTRACT FROM AUTHOR]

This paper studies the impact of Islamic marketing and branding on consumer perception in Pakistan. Although traditionally Islam enforces the idea of Halal for all the products in accordance to teachings of the Holy Quran, scholars have time and again debated the connection of this traditional Islamic branding to the modern branding and marketing theories. Modern branding and marketing techniques focus on creating a demand among the target population, which is then met by supplying adequately. More often than not, these techniques can be dubious or sometimes borderline malpractice, leading to consumer dissatisfaction and disappointment. However, Islamic marketing techniques focus not only on meeting consumer expectations. But also take into consideration the cultural, social and hierarchical aspects of the society. Therefore, the question arises if Islamic marketing and branding techniques falls under the item hypothesis or the brand hypothesis. Following an extensive review of literature, Islamic marketing and Islamic branding were chosen as predictors, the impact of which was to be seen on consumer perception. Two hypotheses were constructed accordingly and a questionnaire was constructed with several appropriate parameters using Islamic brands and Islamic marketing practices. The target population consisted of all consumers in Karachi who had ever experienced or had awareness of Islamic marketing and branding strategies. Sample was drawn using the unrestricted non-probabilistic method and a total of 280 consumers were interviewed. The survey was carried out, and the data was processed using inferential statistics using the SPSS 21.0 software. The Independent T-Test and Frequency Distribution statistical techniques were performed on the data and results interpreted accordingly. The results showed that while Islamic marketing is highly influential on consumer perception, the same could not be said of Islamic branding. Although there are a lot of factors affecting the consumer's decision of buying products, the average Muslim consumer was highly influenced by the laws of Islam, especially the idea of halal. Along with these, consumers are also driven by moral values deeply imbibed in Islam, to buy products that reflect or adhere to the same. Consequently, manufacturers and marketers are forced to play closer attention to these Islamic teachings and rules of halal and haram, in order to avoid consumer disappointment and lawsuits. This study has strong implications on the future of Islamic marketing, since the rules shall apply to not only Pakistanis, but all the Muslims all over the world. Lastly, further research has to be done in order to develop a model based on Islamic branding and marketing rules. [ABSTRACT FROM AUTHOR]

This article presents information on the book "Islam and Public Policy," edited by Sohrab Behdad and Farhad Nomani. This book contains eleven research papers examining a theoretical and practical point of view of different issues of public policy in an Islamic context. Researchers have focused on different issues, such as; ideology and institutions in Islamist approaches to public policy; Islamic economic teachings and practices, implications for a free society, and recommended responses to the challenge of Islam.

Abstract: Islamic equity funds (IEFs) differ fundamentally from conventional equity funds since Muslims are prohibited to invest in certain companies/sectors and pay or receive interest. This paper analyzes the risk and return characteristics of a sample of 145 IEFs over the period 2000 to 2009. Our results show that IEFs are underperformers compared to Islamic as well as to conventional equity benchmarks. This underperformance seems to have increased during the recent financial crisis. We also find that IEF managers are bad market timers. They try to time the market, but in doing so, reduce the return rather than increasing it. An important implication of our results is that Muslim investors might improve their performance by investing in index tracking funds or ETFs rather than to invest in individual IEFs. [Copyright &y& Elsevier]

It is the consensus of scholars that Jewish merchants in the medieval Islamic world structured their economic relationships according to the norms of a broad, 'Islamic' marketplace. Legal agreements found in the Cairo Geniza show that, on the contrary, these merchants adhered to the norms of Jewish law. I discuss the implications of this finding for the study of Jewish and Islamic social, economic, and legal history, for which the Geniza documents are an important direct witness. [ABSTRACT FROM AUTHOR]

Toshihiko Izutsu (1914-1993) is among the few 20th Century scholars who attempt to derive ethical principles of Islam from the Qur'ān by applying semantic analysis of Qur'ānic 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 (2002) and Ethico-Religious Concepts in the Qur'an (2004) to derive relevant Islamic values from the Qur'ān that could form the ethical base of Islamic economic theories as well as policy prescriptions. In particular, the concept of man as khalīfah-ʿabd is seen as having significant ethical implications on how economics and economic decision-making would be developed. [ABSTRACT FROM AUTHOR]

We study the economic effects of religious practices in the context of the observance of Ramadan fasting, one of the central tenets of Islam. To establish causality, we exploit variation in the length of daily fasting due to the interaction between the rotating Islamic calendar and a country's latitude. We report two key, quantitatively meaningful results: (i) longer Ramadan fasting has a negative effect on output growth in Muslim countries, and (ii) it increases subjective well-being among Muslims. We find evidence that these patterns are consistent with a standard club good explanation for the emergence of costly religious practices: increased strictness of fasting screens out the less committed members, while the more committed respond with an increase in their relative levels of participation. Together, our results underscore that religious practices can affect individual behavior and beliefs in ways that have negative implications for economic performance, but that nevertheless increase subjective well-being among followers. [ABSTRACT FROM AUTHOR]

The article presents a study which seeks to identify poverty in both secular and Islamic economics by addressing the questions of how poverty is defined and estimated in both economics, what are the main poverty eradication policies in both economics and what are the types of poverty eradication policies were applied to Egypt. It explains that poverty are conceptualized differently in secular and Islamics economics.

Why was economic development retarded in the Middle East relative to Western Europe, despite the Middle East being far ahead for centuries? A theoretical model inspired and substantiated by the history of interest restrictions suggests that this outcome emanates in part from the greater degree to which early Islamic political authorities derived legitimacy from religious authorities. This entailed a feedback mechanism in Europe in which the rise of commerce led to the relaxation of interest restrictions while also diminishing the Church's ability to legitimise political authorities. These interactions did not occur in the Islamic world despite equally amenable economic conditions. [ABSTRACT FROM AUTHOR]

This article tests two competing theories of the relationship between piety and redistributive preferences in the Muslim world. The first, drawn from the new political economy of religion, holds that more pious individuals of any faith should oppose redistributive economic policies. The second, drawn from Islamic scripture, holds that pious Muslims should favor more redistributive economic policies. Employing survey data from twenty-five countries, the authors find that there is no clear relationship between piety and redistributive preferences among Muslims. The authors find that more pious Muslims are less likely to favor government efforts to eliminate income inequality, but they find only inconsistent evidence that more pious Muslims support governments taking responsibility for the well-being of the poor. The findings offer little evidence to suggest that either scriptural or organizational factors unique to Islam create distinct economic policy preferences. [ABSTRACT FROM PUBLISHER]

The article provides a historical account of the interrelationship among the affirmative action program called bumiputera, Malay and Islam during the pre-independence period through the 1990s in Malaysia. It states that the introduction of Islam among the Malays led to the group's adoption of state religion starting early in the 14th century. It also mentions the impact of Great Britain's attempt of introducing the Malayan Union on Malay nationalism in 1946.

Evaluates Malaysia's development and capital market Islamization programs using a theoretical methodology premised on the epistemology of divine unity as the world view of all Islamic socio-scientific inquiry. Overview of the Islamic socio-economic world view premised on the epistemology of Divine Unity; Model of capital market by emulating the interactive integrative evolutionary methodology of the shuratic process.

Studies the economic system in Saudi Arabia as of 1977. Islamic economic doctrines which affect government policy; Dominant role of the government in the economy; Economic power derived by the government from oil revenues and their uses; Objectives, policies and investment criteria in economic planning; Fiscal and monetary instruments of development policy; Attitude of businessmen towards the mercantile system.

Concentrates on the distinct approaches of the Islamic and occidental scholars in economic studies, touching on issues including unification, and focusing on the teachings of Ghazzali and Kant. Background information on Kant and Gahazzali; Ghazzali's epistemology and its scientific construction; Relationship between Islamic social reconstruction and self-actualization in `Lhya.'

Looks at the economic consequences of applying Islamic principles in Muslim societies. Varying degree to which Muslims follow Islamic teachings; Investigation of applying Islamic principles to economic behavior in Muslim societies; Economic postulates of Islam; Islamic principles and consumers' equilibrium.

Focuses on the growth of Islamic banking. Turning of American companies to Islamic finance as an alternative source of funds; Basic differences between Islamic and Western banking; Use of Sharia law to govern Islamic financial transactions. INSETS: Business Islamic.;Briefcase.;Key players to know..

Examines Islamic and neo-Confucian perspectives on new traditional economy, a traditional economy combined with modern technology. Characteristics of new traditional economy; Study of traditional Islamic economy precepts using modern economic analysis; Key principles of the neo-Confucianism perspective on new traditional economy.