Conventional Economics Research Articles

Transcendental Abundance: A Theo-cosmological Foundation of Islamic Economics

The modern Western civilization infused with the dominance of humanism and secularism has pushed religion away from being involved in scientific developments. The invested paradigm also devoted and flourished in conventional economics disciplines, and unfortunately, the concept is also attached to Islamic economics. One of the doctrines constructed is the cosmological doctrine, which declares that resources are limited and initiates the most fundamental economic problem, scarcity. This study aims to scrutinize the cosmological presupposition in economics by utilizing the Islamic worldview conceptualized by al-Attas. The method is a descriptive-philosophical examination with a thematic analysis approach. This research reveals that God plays an active role in all myriad layers of creation which necessitates His transcendental association with the cosmos. God has names and attributes that introduce his transcendent and immanent presence in the universe. Terms in the Qur'an such as rizq, ni'mah, minnah, ala', and al-fadhl semantically indicate God's transcendental abundant sustenance in the world. The theo-cosmological concept of the Islamic worldview revealed the reality of Islamic economics perceives that resources have an unlimited source of its transcendence.

Peran Uang Dalam Persfektif Ekonomi Islam

This research aims to understand the role of money in the perspective of conventional economics and Islamic economics, using qualitative research methods. This research explores the concept of money as a legal medium of exchange and its function in people's lives. In a conventional economic perspective, money is seen as the main medium for carrying out transactions, a store of value, and a tool for measuring the value of goods and services. However, in Islamic economics, the concept of money is not only seen from its function as a medium of exchange, but also from an ethical and moral perspective, where the use of money must be in accordance with sharia principles, including the prohibition of usury and an emphasis on social justice. This research found that the role of money in people's lives is very important, both in conventional and Islamic economics. However, in Islamic economics, money should not be the final goal, but rather a means to achieve just social and economic prosperity. Money must be used to support sustainable economic growth and a more equitable distribution of wealth, in accordance with the values ​​of justice and benefit in Islam. In conclusion, the role of money in the Islamic economy has a broader dimension than just a means of exchange, because it also takes into account moral and social aspects.

Comparative Study of Consumption Theories: The Perspective of John Maynard Keynes and Monzer Kahf

This study aims to compare the consumption theories of John Maynard Keynes, a conventional economist, and Monzer Kahf, an Islamic economist. The main objective is to identify the strengths and weaknesses of each approach while emphasizing how both theories contribute to economic growth and stability. This study uses a qualitative methodology, thoroughly analyzing primary and secondary sources on the works of both economists. Through comparative analysis, this study evaluates the core concepts and assumptions of each theory. The findings show that Keynes' approach is concerned with individual consumption and its impact on savings and economic growth, while Kahf's theory encourages consumption for the collective good in accordance with Islamic principles. The study concludes that combining elements of both theories can offer a more balanced approach, which at the same time enhances social welfare and economic stability.

Pengenalan Dasar Ekonomi Syariah Bagi Siswa SMA Nurul Hasanah

This Community Service aims to introduce the basic concepts of sharia economics to students at Nurul Hasanah High School. The background to this Community Service is the importance of understanding an economic system that is in accordance with sharia principles among the younger generation, especially in the school environment. Sharia economics, which is based on Islamic values such as justice, transparency and social responsibility, offers an ethical and sustainable alternative in economic management. This Community Service uses an educational approach through counseling, discussions and simulations to provide a comprehensive understanding of concepts such as usury, zakat, mudharabah and profit sharing.Community Service shows that before this program, many students had a limited understanding of sharia economics and often equated these concepts with conventional economics. After participating in the program, there was a significant increase in their understanding of the basic principles of sharia economics, as well as awareness of the importance of applying ethics and moral values in economic activities. In addition, students also show a high interest in learning more and applying these concepts in everyday life, including in personal financial management and business activities.This program is expected to be sustainable and further developed to cover other relevant topics, such as Islamic banking and halal investment, in order to equip students with in-depth knowledge and practical skills in the field of Islamic economics. Thus, this program not only contributes to increasing Islamic financial literacy among students, but also to the formation of character based on the values of justice and social welfare

Pendidikan Pajak Syariah Al-Kharaj Dalam Meningkatkan Wawasan Ekonomi Syariah di Kalangan Mahasiswa STIE Ganesha Jakarta

The sharia economy offers a different approach from conventional economics, prioritizing the principles of justice, transparency, and sustainability. In the sharia economic system, there are various instruments that must be understood in depth by the actors. One of these instruments is sharia tax or known as Al-Kharaj. Al-Kharaj is a type of tax levied on land conquered by Muslims and administered by the government. This concept not only contains financial aspects but also has high social values and justice. This community service activity uses a lecture and discussion method aimed at STIE Ganesha Semester 4 Regular A. Management S1 students A. This activity is prepared for approximately 3 (three) months which includes the preparation, planning and implementation stages. The implementation of the activity was carried out for 1 (one) day, where the PKM team consisted of 4 (four) STIE Ganesha dsen and 8 (eight) students, where the lecturer was responsible for compiling the material and giving lectures, while students assisted in logistics and documentation to ensure that the activity ran smoothly and effectively. With a clear and interactive presentation, the lecture session succeeded in providing participants with a deep understanding of Al-Kharaj sharia tax and with an interactive and collaborative atmosphere, the discussion session succeeded in deepening the participants' understanding and giving them the opportunity to apply the concepts they have learned in practical situations.

Menelisik Pertumbuhan Hukum Ekonomi Islam; Sudut Pandang Berbagai Faktor Di Indonesia

Starting from the Islamic way of life which also teaches about economics, economic problems arise in Islam. Not only in conventional economics, economic problems arise in Islam, resulting in the decline of Islamic economics. Apart from that, Islamic economics is experiencing growth as a result of the current crisis, this is a reminder for the general public to study Islamic economics, of course the presence of Islamic economics is a source of hope for many people. Because Islamic economics has many benefits for the entire community and will continue through education and gradual steps. The purpose of this study is to examine the factors that influence the growth of the Islamic economy in Indonesia Library research is the search for research data or information through reading scientific journals, reference books, published economic growth reports, and other publications that support this writing. The data used is secondary data derived from a variety of relevant literature. To answer research questions, many sorts of data and information are evaluated and synthesized. The study's findings reveal that human capital, the number of people on the planet, the amount of available land, the number of syariah firms, and the availability of technology all have an impact on economic growth.

The Effect of Student Sharia Financial Literacy on Student Financial Behavior (Case Study of Islamic Economics Students

Behavioral finance is a field of science that combines behavioral and cognitive psychological theory with conventional economics and finance that is useful for explaining why people make irrational financial decisions. Financial literacy is related to everyday life. As in making decisions to save, both short-term and long-term financial decisions. This is the role of literacy in everyday life. Therefore, financial intelligence is the main thing that must be considered in everyday life. The purpose of this study was to determine the effect of Islamic financial literacy on student financial management behavior. The object of this research is 100 students of Islamic Economics at Diponegoro University. Data was collected using a questionnaire which was then processed and analyzed using a simple linear regression method. From the data processing, it is obtained that Islamic financial literacy with dimensions of subjective knowledge about sharia compliance, subjective knowledge of usury and profit sharing on Islamic finance has a significant positive effect on financial behavior with the dimensions of saving behavior, spending behavior, long-term financial behavior, short- term financial behavior.

ISLAMIC ECONOMIC REVIEW OF CONSUMPTION: A SYSTEMATIC LITERATURE REVIEW APPROACH

This research analyzes consumption studies from an Islamic economic perspective and a literature review perspective. The research method uses a qualitative type with a systematic literature review approach. The research results obtained from this literature review found that consumption is human nature to maintain life and is a very vital part of economic activity for human life. Islamic consumption theory limits consumption based on the concept of wealth and various types of consumption by Sharia principles for sustainability and the welfare of the ummah. Rapid economic growth and technological developments are causing changes in people’s consumption patterns. The main difference in consumption patterns in Islamic and conventional economics lies in the intention and approach to meeting life’s needs. Intentions and consumption methods to meet needs are critical in the Islamic economic system. Islamic economics does not place materialism as a guide to human life. Islam does not recognize the principle of materialism as conventional economics places consumption in the perspective of mere worldly satisfaction.

Epistemological criticism of the concept of individualism in conventional economies

This research critically examines the epistemology surrounding the concept of individualism within conventional economics, focusing on elucidating the influence of non-economic factors—namely culture, social norms, and collective psychology—on economic decision-making processes. This study endeavors to uncover the role of these factors in individual economic decisions by employing a methodology rooted in analyzing economic and sociological literature. The findings shed light on the discordance between the traditional notion of individualism and the multifaceted realities of contemporary society, where culture, social norms, and collective psychology significantly shape economic behaviors and preferences. By providing nuanced insights into how these non-economic factors impact individuals' economic choices and actions, this research underscores the imperative for a broader, more inclusive perspective within economic paradigms. This study contributes to a richer comprehension of the complexities inherent in individual economic decisions when viewed against non-economic influences.

PERAN DAN KONSEKUENSI KEBIJAKAN MONETER DALAM EKONOMI SYARIAH

Monetary policy is one of the crucial instruments in regulating the economy of a country. In conventional economics, monetary policy is implemented through mechanisms such as interest rates and open market operations. However, in Sharia-compliant economies, which are based on the prohibition of riba (interest), monetary policy must be executed using instruments that adhere to Sharia principles. This study adopts a literature review methodology, thus focusing on bibliographic materials by seeking relevant literature. The theoretical data utilized in this research is obtained from library literature and analyzed based on various references in this paper. By understanding the role and consequences of monetary policy in Sharia economics, it is hoped that new insights can be provided for the development and implementation of monetary policies that align with Sharia principles.

Concept of Scarcity in Conventional Economics; A Critical Analysis With Islamic Economic Perspective-Konsep Scarcity Dalam Ekonomi Konvensional; Sebuah Analisis Kritis Dengan Perspektif Ekonomi Islam

This scarcity issue is still a hot topic every year. In conventional economics, scarcity is defined as a lack of natural resources that can be used and utilized by a society, which ultimately leads to a riot and insatisfaction with the needs of a society. Deficiency is seen as a problem that has yet to be solved in its economic activities. They divide the type of deficiency into two types: absolute deficiency and relative deficiency. While Islamic economics does not recognize the type of deficiency that is absolute. In Islam, the absolute is the abundance of resources, but what is to be limited is the human desire. Islam only knows the relative deficiency caused by the desires of humans that exceed the use of the existing resources. In this study, the author will criticize the concept of scarcity in conventional economics using critical analysis from the perspective of Islamic economics. This research uses the method of library research, which collects data from quoting and analyzes it against various pieces of literature that have relevance to the issues discussed, then reviews and concludes. The results of this study show a very fundamental difference between the concept of scarcity in conventional economics and the Islamic concept. The Islamic economy does not recognize the kind of deficiency that is absolute in nature. In Islam, the absolute is the abundance of resources, but what is to be limited is the human desire. Islam only knows the relative deficiency caused by the desires of humans that exceed the use of the existing resources. In the Islamic perspective, the human condition should not be lack or poverty, but well-being and abundance. Being abundant means that the real condition is sufficient to satisfy all the needs of man; this is the natural condition of the world and not something to be anticipated or expected.

Ecological economics as the science of sustainability and transformation: Integrating entropy, sustainable scale, and justice

Ecological economics, developed in the late 1980s, came to be known as the multi- and transdisciplinary science of sustainability. Since that time, it has blended basic and applied research with the intention of both informing and bringing change to environmental policy, governance, and society. However, many conventional economists have questioned its originality and contributions. This paper begins by clarifying the foundational perspectives of ecological economics that it engages an economy embedded in both real and limited ecosystems as well as socially constructed power relations. Herman Daly, a founder of the field, expanded on Nicholas Georgescu-Roegen’s entropy economics by focusing on a quantifiable sustainable scale of the economy and achieving justice in the control and distribution of economic benefits. He called for both quantitative analyses of economic scale and discursive approaches to a just distribution. The paper then discusses how the terms entropy, scale, and justice are used and interact in the literature, illustrated by some of the key debates in the field involving the Ecological Footprint, substitutability of natural and manufactured capital, and the growth—“agrowth”—degrowth debate. The debates also illustrate the potential for the field to influence policy. Ecological economics as the science of both sustainability and transformation can deploy numerous concepts and tools to provide insights on how to illuminate and solve some of the most pressing problems of the Anthropocene.

Brevíssima história da teoria do desenvolvimento. De Schumpeter e Prebisch ao novo desenvolvimentismo

ABSTRACT Classical developmentalism was heterodox economics that showed countries require a moderate intervention of the state in the economy to industrialize and catch up. Growth depends on investments and on a satisfying expected rate of profit, which import tariffs legitimized by the infant industry argument assure. Latin American countries adopted this industrial policy from the 1950s and experienced high growth rates. But the infant argument loses validity with time. In the 1980s, under the pressure of the Global North, Latin American countries adopted the neoliberal reforms, and are quasi-stagnant since then. New developmentalism emerged in the 2000s, made the critique of conventional economics, proposed a new growth strategy focused on a competitive exchange rate, and legitimized the use of import tariffs with the Dutch disease argument.

Sustainability scientists’ critique of neoclassical economics

Abstract Non-technical summary Neoclassical economics (NCE) theory and neoliberal economics practice together form one of the principal driving forces of environmental destruction and social injustice. We critically examine ten key hypotheses that form the foundations of NCE, and four other claims. Each fails to satisfy one or more of the basic requirements of scientific practice. Hence, NCE is fundamentally flawed, is irrational in the common meaning of the word, and should not be used as a guide for government policies. Because NCE is socially constructed, it can be replaced with an interdisciplinary conceptual framework that is compatible with ecological sustainability and social justice. Technical summary Neoclassical economics (NCE) is widely regarded as providing theoretical justification for neoliberal notions such as ‘governments should minimize regulation and spending, and hence leave major socioeconomic and environmental decisions to the market’. A large body of literature finds that NCE is largely responsible for environmental destruction and social inequality. As NCE is claimed to be a science and has appropriated terminology (without the content) from physics, we examine critically its basic hypotheses and four other claims from a viewpoint of natural scientists and an ecological economist, each a sustainability researcher. This paper defines NCE in two ways: as a theoretical structure for economics based on (1) the hypotheses of methodological individualism, methodological instrumentalism and methodological equilibration, and (2) the three hypotheses named above together with seven other common hypotheses of NCE. We find that each hypothesis and claim fails to satisfy one or more basic requirements of scientific practice such as empirical confirmation, underlying credible or empirical assumptions, consistency with Earth system science, and internal consistency. Sensitivity analysis is rare and ability to predict is lacking. Therefore, we recommend that neoclassical microeconomics be reformed and neoclassical macroeconomics be abandoned and replaced with a transdisciplinary field such as social ecological economics. Social media summary Conventional economics, a driver of environmental damage and social inequality, fails examination by sustainability scientists.

ANALISIS PERBEDAAN PARADIGMA PEMBANGUNAN EKONOMI KONVENSIONAL DENGAN EKONOMI ISLAM

This research has the title analysis of the sharia economic development paradigm and conventional economic development. This research uses a library study of the differences between the sharia economic development paradigm and conventional economics. The method used is the descriptive method, where this analytical method examines a group of people, objects, conditions, events in the present. Economics studies behavior that has no boundaries which originates from mutually agreed rules, while sharia economics is limited by sharia provisions which are sourced only from the Koran and Hadith. a paradigm that has an important role in the concept and implementation of development economics. Conventional economics only pays attention to changes that occur in economic variables, while sharia economics ignores economic variables and avoids things that cannot be justified in sharia.Keywords: Conventional Economics; Islamic Economics; Paradigm

ANALYSIS OF THE PERFORMANCE EFFECTIVENESS OF CONVENTIONAL BANKS COMPARED TO ISLAMIC BANKS

Indonesia occupies the first position of the country with the most Muslim majority in the world. The population of the Muslim community in the country is equivalent to 86.7% of the total population in Indonesia. However, it turns out that conventional banks are still the superior choice for the Indonesian Muslim community for various financial transactions or services compared to Islamic banks. Banks are financial organizations or companies that are close friends with the community, these two things are interdependent and need each other. From the title listed, of course we already know about conventional economics. The target to be achieved in this research is to find out whether there are special advantages or dissimilarities between these idealistic banks and Islamic banks, starting from the function of offering services and financial regulations. Here the researcher uses the literature study method. Conventional banks really spoil their customers by providing a number of tempting benefits, for example, getting interest from deposits that are deposited. But on the other hand, conventional banks led to the wrong path, namely usury, then the Indonesian Ulema Council (MUI) Banking issued the oldest sharia bank in this country, namely Bank Muamalat Indonesia. People still consider these two things.
 Keywords: Muslim, conventional banks, Islamic banks

Pemikiran Ekonomi Islam Kontemporer

Money is an important component of existence. We call the system created by the exchange of certain contracts a financial transaction. These exchanges are simply an attempt to meet basic needs. Muhammad Baqir Ash Sadr consistently discusses the state of Islamic economics in his writings, consistently stating his rejection of colonial economics (conventional economics). The traditional economic perspective on economics and the true understanding of economics are not the same. This view is based on the scientific theory of economics which argues that scarcity of resources in the economy causes economic problems. According to M. Umer Chpra, everyone who pursues entrepreneurship is naturally influenced by their worldview and assumptions about the nature of the universe and human existence.

Problems of the Global Economic Recession and Strategies for Facing It: An Islamic Economic Perspective

This research aims to examine the problem of global economic recession, which still occurs cyclically, and strategies to overcome it from an Islamic financial perspective. This article is a type of qualitative research with a library approach. Data was collected from library sources, books, journals and other encyclopedias. Data analysis uses descriptive analysis. The research results show that the problem of contemporary global recession has been marked since the emergence of the Covid-19 pandemic to the Russian-Ukrainian geopolitical war, which caused a drastic decline in global economic activity, triggered shortages of essential commodities, inflation, and unemployment problems due to the United States Central Bank's policy of raising interest rates. The policies implemented by conventional economics have little effect in overcoming existing economic issues. The application of interest policies is strictly prohibited by Islamic law because it constitutes usury. The Islamic financial system is here to provide various strategies that can be implemented to overcome the economic crisis and build an advanced and healthy economy, the primary sources of which come from the Qur'an and Hadith.

Suku Bunga Dalam Perpespektif Ekonomi Islam

This writing describes the Bank's interest-critical analysis problems. From the discussion, it is understood that the interest in terms of conventional economics is the remuneration given by the bank based on the conventional principle to customers who purchase or sell products. In the classical view, the conventional economic Nakar interest rates and savings related to each other, therefore the interest rate is the most important factor, which regulates the volume of savings. The higher the interest rate, increasingly also reward saving. Thus, the higher the propensity to save or otherwise, therefore it can be understood that in the interest of conventional banks is the spirit in promoting economic income Han banking business. In view of the interest of Islamic economics is additional (ziada) and in this context, Islam considers that interest is riba therefore unlawful bank interest and it can no longer be denied because it is in accordance with what is in the Qur'an and Sunnah about Riba is synonymous with the concept of interest. Bank interest in relation to Islamic economics can impede the economic and equitable distribution of income and can even lead to financial crisis / financial. Thus the interest-free Islamic banking system actually provides assurance or certainty in the economy interact. Because Islamic banks can ensure avoiding of brutality and economic injustice.

After Business Ethics

Lamenting the deplorable state of business ethics is, itself, a staple of the deplorable state of business ethics. But if, as its many critics claim, business ethics continuously fails to deliver on its promise, what could take its place in management education? After business ethics—How else can we integrate ethics into the curriculum? This article argues that an ethical grounding of business theory and corporate practice requires a critique of conventional economics, replacing the mechanistic paradigm that predominated economics over the last 200 years with a humanistic alternative.