Tag Archives: Tax Policy

Political Economy from Islamic Standpoint

Salman Ahmed Shaikh Samuel Huntington in his book raised the debate of clash of civilizations and argued that Islam has ‘bloody borders’. But, the data on actual military expenditures paints a very different picture and confirms that almost all major … Continue reading

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Posted in Articles on Islamic Economics, Socio-Political Issues | Tagged , , , , , , , | 11 Comments

Achieving Market-Led Growth in Islamic Economic Framework

Salman Ahmed Shaikh Islmic economic framework does not argue for a state-led or state-run economy. In fact, Islamic economic principles are very much open and favorable towards market based economy. By enabling market economy to run competitively, an Islamic economy … Continue reading

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Posted in Articles on Islamic Economics | Tagged , , , , , , , | 11 Comments

Effects of Islamic Inheritance Laws on Wealth Inequality

Salman Ahmed Shaikh In an interest based financial system, wealth inequality automatically results in income inequality with legal permissibility of risk-less earnings for the lender. Hence, wealth inequality perpetuates and concentration of wealth increases in the society with the passage … Continue reading

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Development from Islamic Economics Perspective

Salman Ahmed Shaikh In neoclassical growth theories, the emphasis is on increasing savings and technological progress which brings about increase in capital per worker and eventually output per worker. In ‘endogenous growth theory’ models, more sophisticated work has been done … Continue reading

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Posted in Articles on Islamic Economics | Tagged , , , , , , , , , , | 6 Comments

Economic Analysis of Zakat System

Salman Ahmed Shaikh In Islam, Zakat is a religious obligation to pay a part of wealth and production to the government who has to subsequently distribute the Zakat proceeds for the socio-economic development in the heads of Zakat identified in … Continue reading

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A Brief Note on Automatic Stabilizers in Islamic Economic Framework

Salman Ahmed Shaikh Non-discretionary fiscal policy with automatic stabilizers can help in stabilizing the business cycles. Below, we discuss how the institution of Zakat can act as automatic stabilizer in an Islamic economic framework. Institution of Zakat as Automatic Stabilizer … Continue reading

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Posted in Articles on Islamic Economics | Tagged , , , , , , , , | 2 Comments