Economic Performance and Economic Growth in the Early Islamic World

Abstract

The author argues that in the case of Islamic history, the growing interest in the economic theory of institutions and their role in economic growth has shifted the scholarly methodology from empirically based research, to theoretical models which favoured sweeping generalizations about the negative roles of the Islamic state and legal institution. Shatzmiller's examinations of the role of Islamic institutions in periods of economic growth show that economic growth was visible in the key indicators of the Caliphate's economy between ca. 750 and ca. 1100. The conclusion is that there was nothing intrinsic to Islamic institutions that impaired economic growth. RésuméUn intérêt grandissant pour la théorie économique des institutions et pour le rôle de ces dernières dans la croissance économique a récemment modifié la méthodologie des historiens spécialistes de l'Islam. Les recherches empiriques ont été de plus en plus délaissées au profit de modèles théoriques favorisant les généralisations à l'emporte-pièce sur le rôle négatif joué par l'État islamique et les institutions juridiques. Examinant le rôle des institutions islamiques en période de croissance, Shatzmiller montre que les indicateurs clés de l'économie califale témoignent d'une croissance économique entre 750 et 1100 environ. Il faut en conclure que rien dans les institutions islamiques n'entravait intrinsèquement la croissance économique.

Strategi Pembangunan Ekonomi Yang Islami Menurut Fahim Khan

“…Artikel Maya membantah Greif dan Timur Kuran yang menganggap aturan dan institusi Islam tidak berhasil mematerialisasikan pertumbuhan ekonomi. 21 Volume VII/ Edisi 2/Oktober 2016 Dukungan Fahim Khan terhadap ekonomi Islam lebih pada dukungan formalitas pembelakuan fiqh muamalah dari pada prinsip atau nilai ekonomi Islam dengan aplikasi yang lebih efektif komprehensif. Penekanan pada sisi formalitas ini nampak pada apa yang ia maksudkan dengan bagi hasil.…”

Inter-Imperiality

“…It increasingly appears that in the eighth century, Islamic empire began to play a pivotal role in consolidating many such elements, perhaps especially financial mechanisms (Burke 2009;Shatzmiller 2011). Under the Abbasid caliphs in particular, Islam codified precise practices that accommodated both the market and Islamic religious values, a coupling authorized by Mohammed's own work as a small trader.…”

“…Among these were the suftâ ja (similar to modern cheques) and the commenda agreements, later emulated by Italians, a form of investment-capital contract that arranged for promissory transfer of capital from one party to another for both purchase of raw materials and production of goods, with profits to be shared by both parties (Udovitch 1970: 170;AbuLughod 1989: 220Á1). Kennedy (2002) and Shatzmiller (2011) have recently shown that military men and others were paid in wages Á another element that scholars have considered a distinctive feature of capitalism Á and they indicate that this money circulation within the Abbasid empire positioned Baghdad as a financial core for a trans-hemispheric system.…”

Analysis of Islamic Teaching on Economic Growth: The Natural Economic Growth Concept

“…The supply side group is analyzed by Classic and Neoclassic Schools. Among them are Solow (Shatzmiller 2011) that developed the relationship between per worker production and per worker capital as an aggregate production function so that technological progress can be measured, Mankiw, Romer, and Weil (1990) that introduced human capital and Romer (1986) that introduced an endogenous growth when the economy is in the increasing marginal productivity. Assuming the population is not a cost for the economy, economic growth is caused by saving growth from factors increasing and mobility so that economy can perform capital, human resources and research and development investments to create capital accumulation, human capital, and technological progress.…”

“…Kuran (2003)-using comparison method-analyzed underdeveloped experienced Muslim after 1100 CE and stated that institutional factors did not support firm to be a big firm, whereas Western institutional factors supported the Western firm. Shatzmiller (2011) analyzed Muslim economy before 750 CE and found institutional factors to support economic growth such as number of mining, yield from mining, money supply, money flow for economic activity, urbanization, population growth, slavery, housing, migration, manufacturing industry, human resources agriculture and trade, and financial institution. The third group tries to establish Islamic economic growth model using the current data.…”