"Logical Positivism and Islamic Economics" International Journal of Economics, Management and Accounting (IJEMA). Vol. 21, No. 2 (December 2013) p1-18. Also to appear as Logical Positivist Methodology and Islamic Economics: in Proceedings of 2nd International Conference on Islamic Economics and Economies of Muslim Countries that Department of Economics, KENMS, IIUM, Kuala Lumpur, Malaysia held in 29-30 January 2013
ABSTRACT
We provide a detailed discussion of current methodology of economics and its emergence from secular roots in Europe. The foundational principles of this methodology, which is based on logical positivism, are in conflict with Islam. We then sketch some alternative methodologies which would be more suitable for Islamic economics.
We first describe how logical positivism emerged as the dominant philosophy of science, and how it was adopted into the foundations of economics. We then show that the current economic methodology is based on logical positivism. This philosophy is anti-Islamic, and therefore cannot be used to construct Islamic Economics. There are two main points of opposition. Logical Positivism rejects the unseen, while Islam requires faith in the unseen. Logical Positivism rejects morality as unscientific, while morality is a central part of Islamic teachings. This means that a methodology for Islamic economics must be radically different from that currently in use in conventional economic theory. Some essential elements of an alternative methodology are sketched.
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