Chapter 7 Endogeneity of Ethics: The Islamic Economic and Finance System

Abstract

In considering the role of ethics in Islamic economic and finance theory, it is necessary to understand the nature of ethics as human behavior derived from the foundation of Tawhid (oneness of Allah=unity of the divine law) through the transmission medium of the Sunnah (guidance of the Prophet Muhammad). These are together taken up as the basis of spiritual guidance in Islam – hudal il-mutaqqin (Qur'an, 2:2). This foundation of Islamic epistemology in concert with the medium of epistemological discourse among the learned participants establishes the idea of a System and its embedded circular causation relations in view of the ethics in the Qur'anic world-system. It is also necessary to understand how ethics, as so derived from the epistemological roots and processed through the ontological investigation of values and directions for rule setting pertaining to given issues at hand, establish the premise of the shari'ah along with its ijtihadi (foundational Islamic investigation for rule setting) extensions.

Citation

Alam Choudhury, M. (2011), "Chapter 7 Endogeneity of Ethics: The Islamic Economic and Finance System", Baltagi, B.H., Sadka, E. and Alam Choudhury, M. (Ed.) Contributions to Economic Analysis (Contributions to Economic Analysis, Vol. 291), Emerald Group Publishing Limited, Leeds, pp. 145-169. https://doi.org/10.1108/S0573-8555(2011)0000291017