Conventional Economics Research Articles

Expenditure in Human Resource and Financial Performance of Quoted Manufacturing Companies in Nigeria

Despite the philosophy in the conventional economics literature about the importance of human resource in the equation of value creation, human resource has been largely relegated to the bottom in the entire valuation of business model elements. Hence, the nexus of expenditure in human resource to financial performance of business entities in Nigeria is still empirically unclear. Thus, the researcher aimed to evaluate the influence of expenditure in human resource (EHR) on financial performance of quoted manufacturing companies in Nigeria. Salaries, wages, allowances (SWA), other staff related expenses (OSRE,) and human resource efficiency (HRE) are adopted as proxies for expenditure in human resource, accounting based profitability represented as return on equity (ROE) and capital market performance denominated into market value performance of firms (MVP) were proxies for financial performance. Causal comparative and descriptive research designs were adopted in the operational method for estimating the test results of the four hypotheses of the study. Result of the multivariate econometric regression demonstrated a mixed findings at varying magnitudes of significance. Besides statistically significant P-values for SWA and OSRE in hypothesis one, SWA demonstrated significant positive unstandardized beta coefficient contribution while HRE in hypothesis four indicated insignificant but positive unstandardized beta coefficient. Hence, the null hypotheses were rejected in the analysis. However, main predictors of focus were not adequately statistically significant in hypothesis two and three, thus, their null hypotheses were not rejected. Borrowing further interpretation of the empirical result from the explanatory credence of extant accounting literature, the researcher concluded that expenditure in human resource (EHR) among quoted manufacturing companies in Nigeria is positively associated with their financial performance. Such companies were therefore recommended ..

Behavioural Finance –A study on its Bases and Paradigms

Traditionally rational models have been chosen in the field of economics and finance. Experimental psychology has provided the behavioural insights in finance and economics. Behavioural finance is a new field which explains the economic decisions of people. It is a field which combines behavioural and cognitive psychological theories with conventional economics and Finance. In this paper efforts have been made to provide a framework for the concept related to the behavioural finance. Review of literature is carried out so that different dimensions and views regarding behavioural finance can be understood. Theories, models and studies which try to complement behavioural finance studies are also discussed. New frontiers and approaches that can be adopted for further studies are discussed and it may help to provide a conceptual framework for future studies. Key Words: Behavioural Finance, Theories, Models, Conceptual Framework

CONSUMER BEHAVIOR IN THE PERSPECTIVE OF CONVENTIONAL ECONOMICS AND ISLAMIC ECONOMY

Consumer behavior in the perspective of conventional economy is based on the philosophy of capitalism, so that each individual is more rational than spiritual. While in the perspective of Islamic economics, consumer behavior is based on the philosophy of God so that in every activity to meet the needs of consumers are required to always be guided by the principles of monotheism, khilafah, and also justice. In addition the authors find the existence of similarities and differences from both perspectives of the theory. The similarity between consumer behavior in carrying out consumption activity in conventional economics and Islamic economy there are three, among them in terms of understanding, philosophy base, motivation and purpose of consumption, and consumer behavior theory. The difference lies in the foundations of philosophy, the principles of consumption, the motives and purposes of consumption, the configuration of consumer needs, and the latter lies in consumer behavior. This study was conducted with the aim to know: (1) consumer behavior in conventional economic perspectives (2) consumer behavior in sharia economic perspective (3) comparison of consumer behavior in conventional economic and economic perspectives of sharia. This research method uses library research approach, because the object of study is focused on the study by conducting a review study on books, data, literatures related to the analysis of research discussion related to consumer behavior, both in economy conventional and Islamic. The results show that: (1) Consumer behavior involves the behavior of consumers, where they can illustrate the search to buy, use, evaluate and improve a product and their services. (2) The consumption behavior of Islam based on the guidance of the Qur'an and Hadith needs to be based on an enhanced rationality that integrates belief in truth that transcends this very limited human rationality. (3) Comparisons between consumer behavior in conventional economics and the declining Islamic economy, explains that there are some differences from both points of view. The first is lies in the cornerstone of the philosophy of consumer behavior. Second, related to the principle of consumption. The principle of consumption in the conventional economy there are three namely freedom, self interest, and material. Third, look at the motive and purpose of consumption

IMPLEMENTASI WAWASAN EKONOMI SYARI'AH PADA KEGIATAN EKONOMI MAHASISWA

Each student has different level of understanding. Most of them have different knowledge, especially in mastering science of sharia economics. Sharia economics is very different, of course, from conventional economics. A lot of them better understand or are more familiar with conventional-based economic terms. Sharia economics or the study of mu'amalah still feels unusual to them. The problems that occur to students STAI Muhammadiyah Probolinggo show that there are differences in attitudes and behavior in implementing sharia economic activities with mastery of sharia economic material in class. This study examines extent of insight and mastery of sharia economics in sharia economics students in each of their economic activities. This study uses a qualitative descriptive method, which is a method that aims to describe the nature of something that is ongoing in time the research conducted and examines the causes of a symptom. The data collection technique obtained by the author is through observation and interview techniques. This research data obtained from the first semester of Islamic economics students. The results showed that students had a high enthusiasm and curiosity in learning and mastering economics, eager to try something new, especially in the field of Islamic economics, most of them wanted to carry out more Islamic economic activities, although some still use Islamic economics, conventional, wants to be more active and learn deeper about sharia economic norms, values, and principles has good economic insight because they understand that conventional banks considered to have a threat of usury in them even though they are still selected, have insight and knowledge about Sharia economics and able to apply it in their daily activities, They still not mastered Islamic economics related to more technical matters, such as analyzing business risk and business management. Meanwhile, the students' implementation of sharia economic insight that carried out by students is going well, it can be seen from the variety of sharia-based business, inviting the closest family to do business of sharia-based and starting to carry out activities in sharia banking. Students are also able to show the implementation of basic insights and understanding of high sharia economics because they are able to refrain from spending wealth just for pleasure but the orientation is for their own benefit.

Inflation Effect on Unemployment in Indonesia: A Comparative Studies Between Sharia and Conventional Economic Perspectives

This study discusses the effect of inflation on unemployment by comparing the perspective of Islam with capitalism. The purpose of this study is to identify the driving factors that cause inflation and unemployment. This research is conducted using descriptive analysis through linear regression analysis on Indonesia’s unemployment and inflation data from 2001 to 2019. This study found that inflation was not the main contributor to unemployment and only accounted for 18.6% of unemployment, whereas the remaining 80.4% was caused by other factors. This occurs because the increase in prices are not due to aggregate demand, but due to natural and man-made factors. To overcome inflation, the government should create policies to promoting a culture of saving, investing and discouraging wasteful and excessive spending from early age and improve the morale of officials and entrepreneurs. In addition to that, the government can also implement the law firmly and consistently to all parties who commit unethical behaviour; second, increasing the role of the community to observe and report corruption. To reduce the rate of unemployment, the government can implement several policies. Those are implementing policies that make it easier for startups to obtain capital, create investment security and facilitate licensing bureaucracy; second, providing more free and accessible work training courses, especially in urban areas; third, implement 12-year compulsory education consistently.

POLITICAL PARADIGM OF CONVENTIONAL ECONOMICS AND ISLAMIC ECONOMICS: INDONESIAN SHARIA BANK DISCOURSE

This article discusses the paradigm of Islamic political economy and conventional political economy by looking at the discourse of Indonesian sharia banks. This article aims to find out how the political economy that occurs in Indonesian sharia banks. This article is qualitative library research. The data in this study were obtained from library materials such as books, journals, and so on related to the problems studied, namely the conventional political economy paradigm and the Islamic political economy paradigm. The data collection technique used is to collect as much data as possible about the problems studied through the internet and library websites. The data writing technique used is a data analysis technique known by Miles et al., namely data condensation, data presentation, and drawing conclusions. The analysis results show that the differences between Islamic and conventional political economy paradigms are seen in the unification (religion and economic activity) by Islamic economics and separation (religion and economic activity) by conventional economics. The dominance of the conventional economic system, represented by the capitalist and socialist economic system in the world economy, especially Indonesia, does not dampen the significant development of the Islamic economic system, which is agreed upon by various parties.

Implementation of Tawhidi String Relations (TSR) in Demand, Supply, Elasticity, and Market Equilibrium

This study intends to explore the implementation of Tawhidi String Relations (TSR) in demand, supply, elasticity, and market equilibrium and the impact of implementing the TSR approach in these functions. Tawhidi String Relations (TSR), a methodology derived from Tawhid that uses the Al-Quran and Sunnah as an ontology in each solution variable with the ultimate goal of achieving social wellbeing. This TSR method has the advantage of a process of interaction, integration, and evolution which is understood as the evolution of the formation of human knowledge that is subject to Divine Laws through a shuratic process and ijma’, thus realizing a universal social wellbeing function. This study uses qualitative research methods by exploring through literature studies. Basically, demand, supply, elasticity, and market equilibrium in conventional economics have several differences with those found in Islamic economics where what distinguishes them is demand, supply, elasticity and market equilibrium in Islamic economics has limitations and principles that must be met by individuals to behave accordance with Islamic law which is based on the Al-Quran, Sunnah, Ijma', and Qiyas as the agreed source of Islamic law.

An Islamic Theoretical Framework for Economic Analysis

Conventional economics despite its scientific approach and positive arguments failed to solved the current economic problems of the humanity. There are two reasons for such failure; one reason is the positivity of its nature which hinders it from playing active role in controlling human behavior. And the second reason is that its basic postulates by themselves are the causes of the creation of the economic problems. This state of the affairs, necessitate, a complete departure from the contemporary conventional wisdom, in search of solution, to an alternative framework. An Islamic framework of economic analysis could present a viable alternative in the context, due to its dynamic nature, combining both material and spiritual aspects of human economic behaviors. Therefore, this article attempts to provide some insights into the early efforts by Muslim scholars in development the science of Islamic economics. It also underscores the inadequacy of the conventional economics theory and its causes, and the need for formulation of Islamic theory of economics. Philosophical framework of Islamic economics along with some major axioms of Islamic ethics, shaping Islamic outlook on economics are also dealt with. The distinctive features of an Islamic framework for economic analysis are also delineated in this article. Using an analytical approach, the article concludes the urgency of the need for the articulation of a comprehensive Islamic framework for Islamization of economic, hence, solving the contemporary economic problems of the humanity.

Islamic Man: Deep Insights from Monzer Kahf

This paper aims to discuss how the contemporary economic figure Monzer Kahf thinks about Islamic economics. This paper provides an overview of how the discussion of Kahf's theory of an economic system that works based on Islamic teachings. The basic assumption of the theory built by Kahf is a critique of the economic man that applies to conventional economics, Kahf provides a form of thought as a substitute for this concept known as the concept of Islamic man. On that basis, Kahf developed the theory of consumption and production, the teachings of the commandment of zakat, the prohibition of usury and the idea of al-qirad as an alternative to the interest system.

The Contribution of the Western World to the Islamic Economy in Indonesia

Islamic economics that is applied in various countries, including Islamic banking or in Indonesia is called Sharia Banking. This study wants to reveal how the western world's response to Islamic economics is?; and what is the contribution of the western world to the Islamic economy in Indonesia?. This type of research is a normative juridical research with the nature of this research is a descriptive legal study. This study is intended to explore the response of the western world to the Islamic economy that exists in Indonesia. This study produced findings, namely: First, the western world's response to the Islamic economy, namely the Western economic system is intended to embrace the Islamic economic system and support the existence of the Islamic economic system itself, as a result, the western world applies a free business system based on capitalism which prioritizes capital for development. economy in the Islamic world. Second, the contribution of the western world to the economy in Indonesia is a necessity which incidentally is not an Islamic State. However, in its scope, Islamic law in Indonesia in this case the sharia economy is subject to the national economic system, although in Indonesia itself the sharia economic system and conventional economics in Indonesia have their own legal umbrella. So that the Islamic economic system in Indonesia until now is an alternative concept for a prosperous economic system in Indonesia, one of which is a capitalist economic system. Islamic law, especially the Qur'an and al-Hadith. The implication of the western response to the existence of a sharia economy in Indonesia is a golden opportunity for Indonesia to develop a sharia economy, one of which is the halal industry, halal tourism (religion), sharia economic brand, money waqf, the potential of the halal industry sector in Indonesia can be developed through halal food ( halal food), halal fashion, halal cosmetics, and so on, this means that economic freedom in Indonesia needs to be developed. In addition, halal tourism can also be developed in Indonesia, with various potentials that exist in Indonesia. Another implication related to the western response to the Islamic economy in Indonesia is the presence of a diversity of halal food. However, the development of this potential needs to make the resulting production must be based on the principles of benefit and justice, where this benefit is carried out by prioritizing sharia economics as a real need where justice is very meaningful in the economy, especially in Indonesia.

Economics as the scientization of politics

This paper uses Beck's concept of reflexive modernity, and a Foucauldian approach, to critique the positivist philosophy associated with contemporary conventional economics, and to show its inadequacy for the environmental emergency. The paper suggests economics is not neutral but performs an ideological function in justifying the political and social order. Economics can be deconstructed by tracing its history, thereby laying bare its philosophical and political roots. The environmental debate repeats past debates of the 1920s and 30s. By employing the 'subjugated' institutional economics approaches economics can be redefined, and the path to a truly Green New Deal can be unearthed.

Capitalism: what has gone wrong, what needs to change, and how it can be fixed

AbstractThe distinguished contributors to this issue of the Oxford Review of Economic Policy were asked to address the question of what has gone wrong with capitalism, what needs to change, and how can it be fixed. The objective behind the solutions discussed in these articles is to retain as far as possible the benefits of globalization, technology, and market processes, while addressing sources of disaffection and discontent by prioritizing convergence in attainable levels of earned incomes and wellbeing within and across countries. Three key ideas run through the articles. The first is the inadequate depiction of the individual in conventional economics as a person preoccupied with consumption and leisure. The second is widespread support for greater devolution to local decision-taking, and an emphasis on the importance of cooperation in communities. The third is the critique of economic orthodoxy implied by the concept of radical uncertainty. Together, these articles provide an inspiring assessment and reconceptualization of capitalism, and offer practical ways of addressing its deficiencies while preserving its merits.

The Visit of Major C. H. Douglas to Adelaide in 1934

To many people in the 1920s and 1930s, conventional economics had failed with socialists arguing for a completely new system such as the Douglas Social Credit Movement established by Major C. H. Douglas in the mid-1920s. The announcement that Douglas would be visiting Adelaide, South Australia in 1934, led to supporters and detractors of the social credit movement arguing their case via contributions to newspapers; views diverse in quality and reflecting the uncertain state of thinking at the time. While Douglas had made headway in New Zealand, including an invitation to appear before a government committee, in Australia, and particularly in South Australia, Douglas’ theories, although supported by a range of people, appeared less well understood with his supporters struggling to explain the core ideas of the Douglas Social Credit Movement. This may be a reason for Douglas’ less than favourable comment about the Social Credit Movement in South Australia.

Does food security matter to subjective well‐being? Evidence from a cross‐country panel

AbstractThe conventional economics literature equates welfare with consumption‐based utility, neglecting the psychological effects of uncertainty and fear of the future on well‐being. In this study, we examine how food insecurity relates to changes in subjective well‐being within a comparative analysis across different country groups between 2005 and 2018 and find that food insecurity matters to well‐being. We also examine the relationship between experienced food insecurity and well‐being, taking into account any potential endogeneity. In low‐income, food‐deficient, food‐importing and drought‐affected countries, changes in the prevalence of undernourishment explain a great deal of the variation in subjective well‐being over time.

Narrative Institutional Analysis and The National Innovation System in Russia

The paper deals with the widespread narratives describing the institutions specific to Russia’s innovation system. Narrative economics provides an interdisciplinary research perspective, due to its focus on qualitative data that were ignored by the conventional economics for a long time. We emphasize that narrative analysis is rooted in the methodological framework of original institutional economics. Literature review using the PRISMA method did not identified any examples of applying narrative analysis to institutional studied of Russia’s innovation system. The empirical data for this paper involve popular narratives contained in 43 rating media sources extracted from a Russian information analysis agency Integrum. The sources were selected using the real-time media monitoring and analysis system Medialogia. The study covered the period from January 1, 2010 to July 1, 2021. Content analysis of the core ideas extracted from scholarly publications and media sources allowed to identify common narratives on institutional arrangement of Russia’s innovation system, that impede commercialization of innovations. However, conflicting approaches are provided by the literature to deal with related problem situations. The viral spread of popular narratives that affect the actors of Russia’s innovation system is illustrated by one of the typical narratives about the Russian innovation system. The research implications can be useful for developing a strategy for state innovation policy. Improved methodology for assessing virality of narratives and their power, as well as the empirical testing of proposed hypotheses remain the subject for future research.

Marx's critical discourse for thinking about environmental devastation: a perspective beyond the hegemonic imaginaries of sustainability

The historical development of contemporary capitalism has produced an environmental crisis of global dimensions. The predominance of harmful capital technology determines the deployment of the capital productive forces that overexploit and pollute nature in ways never seen before. In this context, the present study aims to advance towards the reconstruction of the ecological streak of Marxism from Marx's critical discourse, distancing itself from both the hegemonic imaginaries of sustainability. An exploratory analysis of documents was followed to present the arguments that both Conventional Economics (CE) and environmental economics deploy to try to explain contemporary environmental devastation, and subsequently, from this impotent criticism and prey to the logic of the market and value as a social form, it goes on to structure the hegemonic imaginaries of sustainability. In this sense, this paper argues for the need for the critical and scientific discourse of Karl Marx to think about the environmental devastation and the objective conditions of possibility for ecological capitalism; thus, it was possible to address the ecological and political-libertarian dimension of Marx's thought and the task of developing it to break with the hegemonic views of sustainability; and overcome the series of misrepresentations and misstatements that have been made to an alleged anti-ecological view of Marx. The study concluded that, while the struggle for the environment has become somewhat urgent, this front does not replace that of the class struggle; that is, the contradiction between capital and nature does not subordinate to the contradiction between capital and labor but, on the contrary, updates it. Therefore, the validity of Marx's critical discourse is essential, in its genesis and development, to make an ecological criticism of the economics and politics of contemporary capitalism.

REGRESI LINEAR BERGANDA DALAM UJI PENGARUH SIKAP DAN PERILAKU TERHADAP KEINGINAN MENABUNG SANTRI PADA BANK SYARIAH

Economy is the main thing and must be experienced by every human being in this world, so that the economy is always developing so rapidly, so is the Islamic economy which is currently developing rapidly to compensate for conventional economics. The Islamic economy has a function as a filter for the economic activities of every Muslim in the world, because in the concept of its implementation it has principles based on the strength of the Muslim Al-Qur'an and Sunnah that avoid usury, gharar and maysir. This study uses a quantitative method, which uses a questionnaire as a measurement tool, while the object of research is the Islamic boarding school students in Yogyakarta, and the variables studied are the attitude and behavior of students toward saving desires in Islamic banks. The results showed that the students 'attitudes and behavior had a positive effect on students' desire to save at Islamic banks.

Comparing the Concept of Scarcity: Conventional vs. Islamic Economics

Scarcity is a central issue in economics as a social science. While conventional economics recognize both absolute and relative scarcities, Islamic economics recognize only relative scarcity and there is no absolute scarcity, because Allah provides sufficient resources for the whole world. The real problem of economy according to Islamic economics is the moral value or human behavior in managing relative scarcity to achieve welfare and justice. Human behavior can be governed when an individual is aware of his roles as a protector of earth and a servant of God in pursuing spiritual and material goals.

PEMIKIRAN EKONOMI ISLAM M.A Mannan

Studies and research on Islamic economics have been growing again in recent decades. Many international forums on economics are held in various countries, such as conferences, seminars, symposiums, and workshops. Islamic economists in conventional economics and shari'ah, appear as speakers at these forums. M. A Mannan is one such thinker. This paper that discusses M. A Mannan's thoughts in Islamic Economics uses a research methodology based on library research. Starting with briefly discussing his life history, then this paper discusses Mannan's various thoughts on Islamic Economics. Then his views on consumption, production and income distribution. In addition, Mannan's thoughts on fiscal policy and spending in Islamic economics were also discussed, thoughts on zakat, and his thoughts on economic development planning in Islam.

Islamic Finance and Economic Development: The Impact of the Islamic Finance Sector on Indonesia’s Economic Development

The re-existence of Islamic economics on the surface of the earth makes a major contribution to the new economic system, with new models and innovations that are applied according to the conditions it goes through without reducing the values that must be implemented in the Islamic economic system. Although it can be understood that this Islamic economic system is not a new thing, but has experienced a new history in the modern era This research aimed to describe the models and applications of sharia-based financial models in the economy, Islamic finance models that are able to promote equitable development, and the impact of the Islamic finance sector on economic development. This was qualitative research with document analysis. The results were financial system in Islam has an impact on economic growth, especially in Indonesia, it can be felt the level of difference between conventional economics and Islamic economics. In addition to the investment factor made by investors, the contract model that is applied bears the risk for both parties, because with a contract like this the level of prudence that must be carried out is more selective compared to other contracts. In addition to Islamic banking, non-bank financial institutions also have a very significant role in increasing economic growth. Among non-bank financial institutions that have an influence on economic growth are zakat, baitul maal wattamwil, waqf and others.