International Journal of Ethics and Systems

Contribution of mathematical models to Islamic economic theory: a survey

Shafiu Ibrahim Abdullahi,
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Shafiu Ibrahim Abdullahi, (2018) "Contribution of mathematical models to Islamic economic theory:
a survey", International Journal of Ethics and Systems, Vol. 34 Issue: 2, pp.200-212, https://
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IJOES
34,2
200
Received 12 September 2017
Revised 14 September 2017
Accepted 27 October 2017
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International Journal of Ethics and
Systems
Vol. 34 No. 2, 2018
pp. 200-212
© Emerald Publishing Limited
2514-9369
DOI 10.1108/IJOES-09-2017-0129
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2514-9369.htm
Contribution of mathematical
models to Islamic economic
theory: a survey
Shafiu Ibrahim Abdullahi
Economic Issues Consult, Kano State, Nigeria
Abstract
Purpose – The purpose of the study is to explore contributions made in Islamic economics methodology,
particularly in the use of mathematical models used to build Islamic economic theories.
Design/methodology/approach – The methodology adopted is a survey by means of literature review.
Findings – Overuse of mathematical models in economics has it apparent weakness in simplifying complex
realities and use of impracticable assumptions. But, that notwithstanding, they have a role to play in the
development of Islamic economics. Empirical analysis in Islamic economics has weaknesses, including
the very fact that moral phenomenon in Islamic economics is difficult to quantify, but its contribution, just like
mathematics, is needed to develop the field. Islamic economics adopt mathematical models that do not cause
obstacles in achieving the aim of Islamic economics, which is Falah. Where it is harmful, it is discarded.
Islamic economics has yet to have a universally accepted research methodology; instead, numerous
methodologies are used today. The poor use of mathematics in Islamic economics by new researchers, among
other factors, may be due to young researchers’ poor background in mathematics.
Originality/value – The paper is unique in looking at the topic of Islamic economic methodology from the
angle of application of mathematical models.
Keywords Ethics, Empirical, Mathematical models, Epistemology, Islamic economic methodology,
Non-mathematical
Paper type Literature review
Introduction
The debate about the right methodology to adopt for Islamic economics has remained a
contested area for well over four decades now. After the first international conference on
Islamic economics in Jeddah in 1976, the interest of contributors to this field of research was
on how to develop an appropriate methodology for the field that was different from
conventional methodology but was in line with wider traditional Islamic epistemology. To
some extent, a part of the objective possibly has been achieved in the light of the
contributions made since then, but the central core of doing away with the dominant
conventional methodology and replacing it with purposely built Islamic methodology has
somehow remained a mirage. Though there were various attempts, no single methodology
can be described as universally accepted with regard to the issue of discarding conventional
methodology. Today, there is a gradual resurrection of interest in the methodology of
Islamic economics. But, mainstream economics, too, is not without controversies on
methodology. Students of economics will not forget in haste the raging debate between the
positivists, led by Milton Friedman, and rationalists, led by Lionel Robbins. Recently, a
leading macroeconomist, Paul Romer, has drawn the attention of the world to failure of
macroeconomics; in his own words, Romer (2016) observed that “For more than three
decades, macroeconomics has gone backwards.” Many scholars have accused mainstream
 economics of failure to involve religious postulates in their theory formulation. For example, Islamic
Tag El-din (1997) accused conventional theory and policy makers for failure to recognize economic
man’s ethical economic behavior as a strategic resource, in line with other human behavioral
resources. Zarqa (1988) observed that what makes Islamic economics different from other
theory
systems is its distinct view on fundamental concepts in economics, for example, Islam
recognized that man has a strong tendency to pursue self-interest but he also has
considerations toward others, and where he is looked as being materialistic, he is also
created to have spiritual tendencies. 201
As Presley and Sessions (1994) also rightly observed, over two decades ago, Western
economists have been somewhat remiss in the past decades in their slow recognition of the
appearance of a new paradigm in economics offered by Islamic economics. This deprived
them of the opportunity to learn something from the body of knowledge that accumulated
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since the start of the process. Though Islamic economics is not as matured as conventional
economics, there are lessons to learn from it emergence. The last global financial crisis
helped widen the cracks in the conventional economics methodology, hence the growing
calls for fundamental restructuring of the field. The French economist Gerard Debreu, in
explaining the reason why economics adopted mathematics more than other social sciences,
argued that quantification of commodity and price, as well as deductive analysis in
economics, led to mathematization (Abdullahi, 2004). But, what mathematically inclined
economists see as advantage, other economists, who are not enthusiastic about
mathematical economics, see otherwise. Boulding (1970) feared that use of mathematical
inference and manipulation might lead to loss of interest in the real world, which could be an
obstacle to the advancement of knowledge. The fact that scientific method leaves out
anything incapable of direct observation compounded the situation. Thus, methodology in
conventional economics mostly account for physical data, for phenomenon like the one in
moral economics (such as Islamic economics), researchers must find methodology for
studying them. The aim here is, therefore, to explore contributions made in Islamic
economics methodology, particularly in the use of mathematical models to build Islamic
economic theories. The next sections show that the process has not been easy and the
destination is far away.

Methodology of economics
According to Malinvaud (1997), the main aim of economics is to understand economic
phenomena and to propose actions likely to improve observed performances or to cure
malfunctioning such as mass unemployment and high inflation. Under this pretention,
economics has borrowed all kind of tools of analysis in the physical sciences. Conventional
economics has always claimed that economics shall be positive science devoid of value
judgement. Some of the major proponents of this school of economics thinking include
Lionel Robbins (who later changed his position from previous stand against empirics) and
Milton Friedman (Choudhury, 1990). According to Friedman (1979), positive economics is in
principle independent of ethical position, and its sole task is the provision of the system of
generalizations for the purpose of making correct predictions. Because of this, he argued
that it is objective science, just like any physical science. But, conventional economics’ claim
to being value neutral has been described as hypocrisy, as no social science discipline can be
said to be value neutral (Rashid, 1991). Recently, there are calls from various quarters,
including from fellow economists and other social scientists, to slowdown the process of
application of neo-classical economic prescriptions by policy makers because of its inherent
flows and other weaknesses. Critics argued that since conventional economics as a positive
science (which according to Friedman has predictive ability) has failed to predict and
 IJOES provide solution beforehand for the past global financial crisis, dubbed as the “great
34,2 recession,” it is logical that it shall be discarded in favor of alternative systems. The
argument goes that economists and the theories they built are cut-off from the realities of
today’s world. It is based on this argument some intellectuals call for banning of Nobel prize
in Economics, which, unlike its counterparts in physical sciences, rewards academicians
whose contribution to practical use of economic theories and economic development of
202 societies is still debatable. One such critics of economics is Palas, ca (2013), who observed
that:
In fact, economics needs to be rediscovered, reconsidered from an interdisciplinary perspective
and handled with the tools of a Renaissance inspired Homo Universalis, because, in reality, it
simultaneously incorporates politics, mathematics, psychology, law, philosophy, art and religion.
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The European enlightenment thinkers have played a pivotal role in the development of
capitalism with their belief that man is perfectly and rationally capable of running his life
without any need for divine guidance (Aydin, 2013; Abdulkader, 2016). Unlike Islamic
economics, which recognized “matter-spirit interlock,” conventional economics do not accept
it, thus championing what Hasan (2016) referred to as “rational materialism.” The
conventional rational economic man, according to Ariff (2005), is an abstract shadowy
being, self-seeking, individualist and ruthless maximizer. The moral philosophers of Adam
Smith’s time used Newtonian physics as a model in their writings, “the idea that commercial,
individualistic society could be run in a manner akin to the motions of the planets”; the
popular concept of invisible hand was an imitation of Newton (Rashid, 1991; Abdulkader,
2016; 2017). Under this positive economic assumption, the nature of results or the theorem to
be derived from our positive analysis depend on the quality of the foundational axioms on
which the whole hypothesis was built. Thus, one cannot do better than the underlying
assumptions and axioms on which his hypothesis was built on. As one local saying goes,
you cannot plant beans and expect to get groundnuts during harvesting period. Science was
described as made up of more or less tightly interrelated theories, but in the case of economic
science, the interrelations are not very tight, more so than in other social sciences but less
than what is found in the developed natural sciences (Malinvaud, 1997). Looking at
developments in both the academia and the professional worlds, economists now-a-days are
being pushed to accept the open truth that they may have to take up the role of religion into
consideration if they want to understand the full working of the economic system (Azid and
Asutay, 2007). Thus, the current situation is similar to that 100 years ago, when economics
was seen as dismal science; not much has changed.

Mathematical models in economics

According to Chiang (2005), mathematical approach to economics is not different from non-
mathematical approach; the aim is to derive a set of conclusions or theorems from a given
set of assumptions or postulates. But, mathematical approach has advantage because
“symbols are more convenient to use in deductive reasoning and certainly are more
conducive to conciseness and preciseness of statement” (Chiang, 2005). But, as noted by
Friedman (1979), economics theory must be more than mathematical tautologies to be able
to predict consequences of action. The fact that mathematical models are a generalized and
abstract forms of economic theories do not mean they are generally valid. Chiang (2005), for
example, compared using mathematics vs text to driving vs walking, thus using
mathematics to provide the speed of reaching conclusion or arriving at theorem that words
cannot provide. But, critics of conventional economics accused it of being in a state of
“physics envy” (Abdullahi, 2004). To further buttress this alleged physics envy, in a recent
 forum, Romer (2016) asked “why there are such striking parallels between the Islamic
characteristics of string-theorists in particle physics and post-real macroeconomists,” which economic
referred to the behavior of physicists that economists are copying. He further argued that
“The conditions for failure are present when a few talented researchers come to be respected
theory
for genuine contributions on the cutting edge of mathematical modeling.” He continued:
As a result, if facts disconfirm the officially sanctioned theoretical vision, they are subordinated.
Eventually, evidence stops being relevant. Progress in the field is judged by the purity of its 203
mathematical theories, as determined by the authorities.
The pioneer neoclassical economists merely discovered advanced Calculus and used it to
develop their marginalist approach and, from there, economic equilibrium analysis
(Schumpeter, 1959; Palas, ca, 2013; Abdulkader, 2016). Those opposed to mathematical
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economics argued that intuition and mathematics alone without measurement cannot tell
much about the reality. Among well-known critics of mathematical economics are early Carl
Menger and Friedrich Hayek, who went by the name Austrian school (Palas, ca, 2013). It also
includes well-known critic Kenneth Galbraith. On teaching of economics, for example,
Malinvaud (1997) noted that “teaching nowadays focuses so much on the models that they
often happen to be taken as the unique ultimate goal of economic learning.” But, unlike the
use of mathematics in economics, the usage of statistics has long history in economics,
before the introduction of mathematical models (Morgan, 1990). Statistics was initially
viewed as contributing to regularities, measurement and presentation of economic data.
Today, economic researchers are leaning in favor of empirical works than building theories.
This can be seen from the number of empirical works published by conventional economic
journals. But, even this is not without criticism, as it can be noticed that empirical evidence
contradicts each other in numerous occasions.
In an editorial of volume one of Econometrica, Ragnar Frisch wrote this as the aim of
then newly formed econometric society:
To promote studies that aim at a unification of the theoretical-quantitative and the empirical-
quantitative approach to economic problems and that are penetrated by constructive and rigorous
thinking similar to that which has come to dominate in the natural sciences. Any activity which
promises ultimately to further such unification of theoretical and factual studies in economies
shall be within the sphere of interest of the society (Morgan, 1990).
Economists such as Paul Samuelson, Kenneth Arrow and Gerard Debreu were credited with
pumping mathematical rigor to economics. Samuelson, for example, realized that the use of
complicated mathematics could clarify ideas and unify different fields under a common
framework (Backhouse, 2017). Before 1930s, few economists cared to use mathematics in
their writings, but when more economists started using mathematics after, it was adopted as
a tool of analysis to help clarity and conciseness in the expression of theories and to make
economics more rigorous (Morgan, 1990; Abdullahi, 2004; Abdulkader, 2016). Much early
adopters of mathematics in their economics writings include Auguste Cournot, Leon Walras,
Francis Y. Edgeworth, William S. Jevons, Vilfredo Pareto, Alfred Marshall, John M. Keynes
and Irving Fisher. In the forefront of the various schools of economics advocating for use of
mathematics in economics were neo-classical economists (Palas, ca, 2013). A lot many models
in economics were borrowed from mathematical physics. These include widely studied
models such as general equilibrium and partial equilibrium and static and dynamic
analysis. But, even Friedman (1979) has advised that social scientists, more than other
scientists, need to be self-conscious about their methodology. In addition, not all
mathematical models are in line with economic realities, and they must be converted into
econometric models to confirm their real-world applicability. There is much reference to
 IJOES fable about a doctor, a chemist and an economist who found themselves in a desert with a
34,2 can of food but no tool to open the can. While both the doctor and chemist were thinking of a
way to solve the problem of opening the can, the economist offered that he has a solution:
“assume that we have a can opener.” This fable demonstrates how economists and the
model they built live in a mirage. Just like mathematics was developed to serve practical
human needs, as in physics, but later become abstract, economics was developed to serve
204 humanity away from poverty, and lack of growth has become an abstract subject with little
concern for developmental matters. In the process, economics has excessively used
rationalism and axiomatic systems of mathematics (Palas, ca, 2013).

Islamic economics methodology

According to Abusaud (1993), Islamic methodology is rooted in Qur’anic approach of
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reflection and contemplation. Islamic economics foundational values such as Tauhidi

(unity), prohibition of Riba (interest) and Zakah (alms) are God ordained man cannot abolish
or replace them, he can only offer limited interpretive flexibility (Hasan, 2016). Thus, ethics
and economics under Islamic framework cannot be separated (Ariff, 2005; Choudhury,
2014a; 2014b; Abdulkader, 2016). This is the main difference between Islamic economic
system and other systems. For example, Muslim economists do not have to unnecessarily
overcharge their faculty of thinking looking for fundamental philosophical answers such as
those that deal with the conventional field of economic justice; these answers have been
prescribed in Holy Qur’an and Sunnah. While the conventional economists debate about
justice, distribution and fairness, as found in welfare economics, for details of conventional
treatment of this, refer to the works of Rawls (1972); Hammond (1976); Varian (1975) and
Arrow (1967). For Islamic economist Zakat, inheritance, alms and other Islamic distributive
tools have been divinely ordained 1,000 years ago. The institution of Waqf as one of the
central pillars of Islamic economics distributive system has been in existence for many
centuries. As a matter of fact, it is the Western world that borrowed this mechanism to
sustain their economic development in the past 100 years (Çizakça, 1998). Though Islamic
economics foundation is based on Fiqh sources, their methodologies are not necessarily the
same. While Fiqh has a historically well-developed methodology known as usul al-fiqh,
Islamic economics rely on a methodology that suits its social and descriptive nature (Saleem,
2010). Islamic economics do not allow for the usual conventional dichotomy between
substantive and normative descriptions in the social sciences (Abusaud, 1993). Economic
behavior under the Islamic system is never value-free, rather it is value-based, and
references are frequently made to the ethical foundations of the system (Asutay, 2007;
Dsouli et al., 2012; Abdulkader, 2016). Thus, the departing point of Islamic economics from
the mainstream, according to Hasan (2016), is its ethical foundation. Aydin (2013) view
Islamic economics as distinct because of the unique Islamic worldview, “particularly its
ontological, epistemological, and teleological differences from the materialist worldview.”
Though Islamic economics is dominantly ethics-based, it recognizes scientific body of
knowledge, particularly cause and effect relationship, empirical gathering of data and
realistic model building (Hasan, 2016). According to Saleem (2010)another way to look at the
sources of knowledge under Islamic economics is: first source, the text (Qur’an and Sunnah),
second source, the economic phenomena. The principle of ethical endogeneity makes ethical
consideration endogenous to socio-economic system, therefore allowing social consensus
between individual and social preferences (Choudhury, 1990). As Furqani and Haneef (2012)
observed, the reliability and soundness of theory depends on its doctrinal, logical and
factual integrity. They referred to this methodology as Tawhidic methodology or
methodological unity.
 Even within the Islamic economics, for example, some of early Shi’a contributors favor Islamic
some kind of socialism, while most Sunni contributors are in favor of free enterprises economic
(Behdad, 1994, 2005; Asutay, 2007;). Just like former Safavid Iran is Marxist-inclined,
Ottoman Turkey is free enterprises-oriented (Alatas, 2006). Early Shi’a scholars, just like in
theory
many other Islamic endeavors, tried to distance themselves from the mainstream Sunni
Islamic economic ideas that received formal endorsement during international conference on
Islamic economics held in Mecca in 1976. Alatas (2006) accused mainstream Islamic
economics of neglecting neo-Marxism, dependency and world system theories instead of
205
preoccupying itself with answering questions raised by classical, neoclassical and
Keynesian schools of economics. There are those who see most Islamic economists as
brainwashed by conventional economics and still working within its shadow (Farooq, 2013).
Critics such as the sociologist Syed Alatas (2006) see modern Islamic economics as incapable
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of serving as an alternative to conventional economics, also seeing it as standing in the

shadow of the bigger conventional economics. But, Islamic economist Muqorobin
(Muqorobin, 2008) argued that technically, in the short run, there is no way Islamic
economics can entirely ditch conventional economic analysis and method, but in the longer
run, that is the aim of Islamic economics to be independent. Furqani and Haneef (2012)
shared the view that Islamic economics methodology would not start from scratch but use
the relatively more advance development in conventional economics (theories and
methodologies) and attempt to make them compatible with Islamic economics. Choudhury
(1990, 2012, 2014a, 2016a) presented his Tawhidic epistemology, which, although coherent,
some scholars argued that it has few adherents among the mainstream Islamic economists
(Farooq, 2013). The methodology of humanomics championed by Choudhury (1990), in his
own words, is:
Based on discovering the quantitative or inferential answers to ethico-economic studies. This
methodology expands upon the methods of the social sciences by encompassing a scientific
analysis of non-economic variables as well (ethical imponderables).
This means that Choudhury, if his numerous contributions in this field are to be taken into
consideration, is also for mathematical models in Islamic economics. This is very clear from
his contributions in this field, which are written in mathematical language, see for example
Choudhury (2014a; 2014b; 2011). But, some Islamic economists, particularly Tag El-din
(1997), attack Choudhury’s humanomic methodology as not well equipped, too advanced for
understanding of undergraduate level students, unfit to contribute to professional dialogue
and being anti-positivist, just like the works of Asad Zaman, Zarqa and Mohammed Anwar.
Among the leading proponents of following neoclassical approach is Hasan (2016), who
argued that Islamic economics does not need to discard everything that came from
conventional economics but to try to incorporate it into Islamic economics by removing
those areas that clashed with Islamic values. Even Tag El-din (1997) sees the Islamic
economic process as using conventional tools of analysis to find central economic problem of
the Shari’ah system in line with jurist orders and prohibitions. In his words:
The art of developing testable economic theories is the headache of positive economists to which
we may also contribute, but our main headache must remain to detect the relevant policy
implication of standard results.
For example, Dar and Presley (1999) also strongly supported using the empirical approach
of Western economic literature. They argued that “rather than develop in isolation from
Western literature, Islamic scholars would do well to exploit the wealth of supportive
argument to be found in Western literature”; this according to them “would also encourage
 IJOES greater focus in the West upon the new Islamic paradigm as a topic for research.” Naqvi
34,2 (1981; 1993) and Choudhury (1990; 2012; 2014b; 2016b), for example, used many deductive
methods of analysis for arriving at some of their conclusions. But, Choudhury (2012)
attacked the mimicking of classical and neo-classical economics by Islamic economics and
finance, declaring them contrary to the epistemic origin of Qur’anic thought. He argued that
Muslim worldview centered on a complete rejection of the conventional neoclassicism, and
206 returning to an epistemological system premised on the Tawhidi worldview of unity of
knowledge. Even Azid and Asutay (2007), in their ethico-economic model, have advocated
ignoring the substitution concept of the conventional economics in favor of ethico-moral
cum economic coalition model. On the general approach to Islamization of economic
discipline and institutions, Hasan (2016), who favors gradual process towards Islamization
of economics, argued that the “glide has to be from doctrine to reality.” Choudhury (1990)
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also has this to say regarding gradualism:

There appears to be no Islamic injunction calling for a one shot establishing of all the
pre-conditions of a Golden Islamic Society. That would be an illusory prescription to follow. The
essence of Islamic Economic Evolution like that of the Steady State Growth in the literature is to
evolve society towards the final desired state along an optimal menu of goals (state variables) and
policies (decision variables).

Mathematical models and Islamic economics

Despite the differences in axiomatic foundation between Islamic economics and
conventional economics, over the years, Islamic economics has barrowed substantially from
mathematical models developed in the neoclassical economics sphere. Thus, critics blame
this much dependence on neoclassical methodology (Alatas, 2006; Farooq, 2009; 2013). But,
still, some section of Islamic economists does not see anything wrong in Islamic economists
using tools of mathematical analysis, whose earlier predecessors have contributed to
building. This include contribution of medieval scholars such as Alkhawarizimi and Umar
Khayyam in developing the modern Algebra, as well as Alhazen and Al-Tusi in other
segments of mathematics (Abdullahi, 2004). Other Islamic economists are very critical of
over mathematization of economics, fearing that the same thing that happened in case of
mainstream economics may happen with Islamic economics. Critics argued that “it has
helped economics earn much formalistic precision and rigor, but at fundamental sacrifice of
substance and being disconnected from the real world economy” (Farooq, 2009). Some of the
mathematical models used are adaptation of conventional mathematical models with small
changes being incorporated, such as including concepts like profit and loss sharing, Zakah
and Sadaqah; but, direct borrowing from the field of mathematics or physics, as that
occurred with conventional economic during its formative years, is rare. This may be due to
lack of mathematical grasp of some section of the early pioneers and disdain for
mathematics. Although the level of economy-wide or sectoral adaptation of conventional
models to suit Islamic environment, which occurred in the second phase of Islamization of
economics, has subsided in the current stage of the process, today, Islamic economists prefer
less mathematical models that originated from conventional field as well as textual
explanations and graphs in explaining Islamic economics phenomenon. Some of the Islamic
economists who used mathematical models include Masdul Choudhury, Syed Naqvi, M.
Metwally, Mohsin Khan, A. Mirakhor, Tag El-din, Zubair Hasan, Mabid Ali Al-Jarhi, John R.
Presley and Monzer Khaf; the list is long. Others like Asghar Qadir, who happens to be a
mathematician have contributed to shaping contributions in this area. As an example,
Metwally (1983) adopted mathematical rigor in explaining Islamic fiscal policy, especially as
 it pertains Zakah. His other works (Metwally, 1990; 1992; 1997) also followed the same Islamic
pattern of using mathematical models in explaining Islamic economics phenomenon. economic
Al-Jarhi (1985) paper Islamic macro model of distribution adopted a mathematical model
used in conventional economics but transformed it to suit Islamic framework. Likewise, his
theory
other works such as “Macroeconomics: An Islamic Perspective” (Al-Jarhi, 2002a) and
“Transactions in conventional and Islamic Economies: A comparison” (Al-Jarhi, 2002b).
Siddiqi (1987) criticized conventional approach for given priority to method of analysis
over the ends; he pointed out that: 207
Once the moral purpose of economics is recognized formal techniques of analysis would cease to
be ends in themselves determining content of economics to the exclusion of what a method cannot
handle even though its consideration may be basic for the overall purpose.
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Because of the increase in relevance of Islamic financial institutions in the Islamization

process, today, the significance of empirical works has drastically increased, unlike earlier
contributors who emphasized on theory building. But, some scholars are calling for caution
in this much drift toward empiricism, similar to what is obtained in the conventional field.
Hasan (2016) observed that in the field of Islamic finance, the danger of overusing the
empirical method is glaring, despite the fact that in his own words, “ethical norms and
intentions cannot be quantified and the data they can, and do use, seldom have the needed
Islamic roots or content.” Recently, the number of empirical works in Islamic economics and
finance has increased. Empirical economists in this area of research include scholars such as
Muhammad K. Hassan, Zubair Hasan, Abdel-Hameed M. Bashir, Habib Ahmed, Abdul
Ghafar Ismail and others trained in econometrics. Empirical research in Islamic economics is
fashionable with younger researchers. This among other things may be due to the
availability of data on Islamic finance and banking, as well as the development of computer
software, that makes it easy to conduct this kind of research. Unlike in the middle of the past
century, when such facilities were not accessible. But, calls for using empirical research in
Islamic economics started much earlier. For example, Rashid (1991) has pointed out the
advantage of empirical approach to Islamic economics as “broaden the scope of Islamic
economics and increase its interaction with others.” Even, Hasan (2016), despite his criticism
of handling of empirical finance, argued that theorizing has little value in the Shari’ah. This
tentatively will therefore strengthen the opposite of theorizing, among which is empirics. An
important factor to notice is that researcher background determines his/her use of
mathematics in Islamic economics. Scholars with background in mathematics and statistics
find it easier to use mathematics in their writings on Islamic economics, while those with
more Shari’ah or textual background find mathematics a bit difficult. This also happened
with conventional economics during its early stages of adaptation of mathematics. Scholars
who had physics and mathematics background used mathematics a lot than others.

Discussion and conclusion

Hasan (2016) sees the present state of Islamic economics as in a “muddled state and lacks
direction.” He puts the main cause of that on Islamic economics origin and history of
development, to the clash between religious scholars and Western educated Muslim
economists. As a social science that describes economic phenomenon, Islamic economics
today has found itself in quandary of what to describe? Shall it stick to the ideal of
describing previous Muslims societies who practiced Shari’ah or describes modern Muslims
nations who are not run within the dictate of Shari’ah? This results in the argument of those
who are against too much use of empirical data in Islamic economics, because in most cases,
what they are describing is not an ideal Islamic state. Thus, the question of appropriate
 IJOES methodology and tools of analysis will continue to puff up now and then as the discipline of
34,2 Islamic economics mature. Whether it is due to poor background in mathematics or the
continuous criticism against the use of highly advanced mathematical models or both, most
of today’s contributors to Islamic economic theory shy away from using mathematics in
their writings. They tend to stick to using graphs and charts where possible; complex
mathematics are involved only when they are transformed into econometric models for
208 empirical works. Then, there is the case of the quality of research output in Islamic
economics, unlike the outputs in the second half of the past century known for their quality
and depth; a lot of research is of lower quality. Another difference is in the high volume of
research output produced today, probably from ill-equipped young researchers who were
enthusiast of contributing to the Islamisation of economics. There is also absence of good
training institutions to train young aspiring economists on research in Islamic economics.
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Arshad (2016) studied journals that produced research works in this area and shortlisted
about 25 on the basis of a self-defined quality standard criterion. But, despite his efforts, he
failed to include other journals that have being in the field for long and have contributed to
the development of the field. Looking at the history of academic research in the conventional
economics, it is apparent that Islamic economics has a lot to learn from the development of
conventional economics. For example, conservative journals in the field are known for their
quality output and the caliber of people on their editorial boards. Competent conventional
economists were mandated to oversee the field and not leave it in the hands of armatures to
determine which direction the field would take.
Similar to what happened in the case of conventional economics as it grew and
matured, where offshoot disciplines such as marketing, accounting, finance and
management branched out, in Islamic economics, today, Islamic marketing, Islamic
accounting, Islamic finance and Islamic management have branched out with their own
methodologies, research journals, professional associations, sometime university
departments and research institutes. This is a true sign of development of Islamic
economics. These offshoot disciplines do not have their distinct methodologies as of
now; in most cases, they rely on using methodologies used in Islamic economics and
that of their more matured respective conventional counterparts. Though Islamic
economics is yet to catch up with the level of academic works, rigor, richness and depth
of conventional economics, with the depth of research in Islamic economics since the
beginning of serious academic work in the middle of the past century, it can be
compared to less rigorous conventional disciplines such as sociology and political
science. This can be clearer when one looks at the amount of academic work being
churned out every year from all corners of the globe, also looking at the quality of the
research done so far, the acceptance of research works in the area by both Islamic and
conventional journals and the gradual acceptance of the discipline by previously
unmoved conservative conventional economists in Western educational capitals.
Unlike in the past 30 years when a lot of young postgraduate students were sponsored
to undertake PhDs in Islamic economics, the trend has declined now. Young researchers
found it difficult to find sponsorship for research on Islamic economics, despite the
increase in the number of countries that are adopting the more influential branch:
Islamic banking and finance. Despite these challenges, enthusiasm for the subject
continues to increase around the world. In today’s internet age, when low-quality
research is easier to conduct and cases of plagiarism are rampant, internet resources
have made it easier for researchers from everywhere around the world to share their
research. It is like having one single global library, the internet, unlike before when
 researchers in the field of Islamic economics had to travel to Jeddah, Kuala Lumpur or Islamic
Islamabad to access research materials. economic
There is indeed more room for use of mathematical models in Islamic economics, despite
the general move toward empirical economics of data collection and analysis. But, like it was
theory
pointed out before, it is to be done with cautious optimism. Both the capitalist academia and
their central planning counterpart in Eastern Europe have made heavy use of mathematics
to develop their respective economic thinking. In fact, both Eastern and Western economists
have contributed almost equally to the mathematical rigor in economics we see today. So, it
209
is a futile effort for Islamic economics to advocate abandoning mathematical economics. As
mentioned before, Muslim scholars during the golden age of Islamic civilization contributed
to the general development of mathematics. Today, some of the most promising
methodologies being developed for the field of Islamic economics have used mathematics.
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One such case is the Tawhidi methodology being championed by Masdul Choudhury; it
made good use of mathematics to explain the Islamic view regarding economic
management. Despite the criticisms against mathematics, economics as a subject and
economy as an institution cannot function without it. For example, a manufacturer needs
mathematics to calculate his revenue, profit and lost, government needs mathematics for
economic planning and decision-making and individuals need mathematics for their daily
calculations of income and spending. Therefore, what is needed is some sort of striking of
balance between abstraction and daily economic realities. Various aspects of mathematics
have real-world economic applications. Such mathematics include input output analysis,
linear programming, financial mathematics, game theory, geometric analysis, logarithm,
algebra, set theory, inventory control, network analysis, etc.
Hasan (2016) blamed the conservatism of the old guards of Islamic economists for much
of the present weakness of Islamic economics. He also cautions against rising use of
econometric modeling, as according to him, it lacks theoretical base and is confirmative. But,
there is also growing departure from adopting the usual conventional economic model
assumptions. Economic models developed in the Islamic economic system today use less
assumptions compared with the frequent use of unrealistic assumptions in the neoclassical
economics. While those who said that the use of empirical analysis in Islamic economics was
not realistic, given the fact that today, Muslim economies are not run according to Islamic
tenets and the data so collected are not necessarily Islamic, have a point; but, those who
argued for empirical tests also have a point, given the fact that even in conventional
economics, most of the models and their assumptions that are being tested are not realistic,
but testing them is helping in improving the real-world applications of these models. Thus,
for Islamic economics using empirical analysis helps adjust modern Muslim economies to
the ideals and realities of an Islamic economy being championed by Islamic economists,
including helping policy makers to make improvements to the economy and its individual
sectors. Just like in conventional economics, empirical tests help improve Islamic economics
theories. Despite the shortcomings in using mathematics to build sophisticated economic
models, economics (including Islamic economics) will continue to use mathematics, only the
use of mathematics shall be closely tied to reality on the ground and away from much
abstraction. It is the task of Islamic economists to lead the way and show the appropriate
way to use mathematics in building economic theories and applications. The core of the
Islamic economics methodology is Maqasid Al-Shari’ah (objective of Shari’ah), which
served as Fiqh foundation of Islamic economics.
Summary of the analysis on Islamic economists’ approach toward mathematical
economics and empirical analysis is as follows:
 IJOES  Overuse of mathematical models in economics has it apparent weakness in
34,2 simplifying complex realities and use of impracticable assumptions. But, that
notwithstanding, they have a role to play in the development of Islamic
economics.
 Empirical analysis in Islamic economics has weaknesses, including the very fact
that moral phenomenon in Islamic economics is difficult to quantify; but, its
210 contribution, just like mathematics, is needed to develop the field.
 Islamic economics adopt mathematical models that do not cause obstacles in
achieving the aim of Islamic economics, which is Falah. Where it is harmful, it is
discarded.
 Islamic economics has yet to have universally accepted research methodology;
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instead, numerous methodologies are used today.

 The poor use of mathematics in Islamic economics by new researchers, among other
factors, may be due to young researchers’ poor background in mathematics.

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Corresponding author
Shafiu Ibrahim Abdullahi can be contacted at: shafiuibrahim@gmail.com

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