INTEGRATING VALUES IN ECONOMICS: CHALLENGES AND PROSPECTS

Salman Ahmed Shaikh

doi:10.53840/ijiefer188

Authors

Salman Ahmed Shaikh Department of Economics, International Islamic University of Malaysia

DOI:

https://doi.org/10.53840/ijiefer188

Keywords:

Methodology of Economics, Islamic Economics, self-interest, Universal values

Abstract

This paper builds the case for a values-driven framework in economics. Religion is the most historic and significant institution in human society shaping people’s worldview and preferences while also providing rules and norms in individual and collective life. Religious institutions also affect markets and transfers beyond markets through redistribution. Mainstream economics can incorporate religion as institution to look at the impact on aggregate outcomes. However, mainstream economics is not robust in defining religion or religiosity as a dynamic state of being, i.e. a continuous variable. It only takes religion as a representation of identity as a dichotomous variable. Mainstream economics can incorporate analysis of economic behaviour concerning religious products which are traded in the market. Nonetheless, mainstream economics is inappropriate in analysis of allocation of economic resources beyond markets where the motive transcends self-interest. The implication for Islamic economics is to assimilate mainstream economics tools and framework only after critical filtering and modifications and leave it in situations where it contradicts and falls short in embracing the revealed knowledge.

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