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MODELING AN ISLAMIC ECONOMIC SYSTEM: AN INTERACTION DELIVERY MATRIX AND BOOLEAN DIGRAPH APPROACH

MEHDI B RAZAVI, University of Nebraska - Lincoln

Abstract

The Islamic Economic System, based on the Islamic values and world view, is only a part of the whole Islamic system and is predominated by ethics through which economic activities are integrated with social life and standards are set for operational rules of social behavior. It is the ethical norms that control and regulate man's socio-economic behavior and dominate economics, not the other way around. This system not only explains socio-economic phenomena, but also corrects economic behaviors. The central theme of this study is to analyze the possibility of formulating a framework of an economic system primarily on the basis of the Islamic teachings, utterly independent of the existing Socialism and Capitalism. To approach this objective a holistic methodology will be chosen. The methodology is on the premise that Islam is a multi-dimensional religion, of which economics is only one dimension. Since Islamic economics can not be separated and analyzed by itself, one must have some understanding of the history of Islam, the Quran, as well as the Islamic economic philosophy that constitutes the foundation of Islamic economic system; which, in turn, is the starting point for building models and organizing policy research. To develop an Islamic and socio-economic model I have utilized a system engineering approach structured by John N. Warfield. First, a matrix is formulated, which serves as a means of learning process about the Islamic system and a basis for constructing a model and organizing research. Then the elements of the matrix are defined. The concepts of contextual relations, transitivity, binary matrices, digraphs, adjacent matrix are used and the obtained adjacent matrix is transformed into Boolean reachability matrix. The reachability matrix with regard to each contextual relation and their related hierarchial digraph are shown. Finally, the impact structure is subdivided into two other structures of enhancement and inhibition. A model, based on each structure, is developed and the digraph of an Islamic socio-economic matrix is derived.

Subject Area

Economics

Recommended Citation

RAZAVI, MEHDI B, "MODELING AN ISLAMIC ECONOMIC SYSTEM: AN INTERACTION DELIVERY MATRIX AND BOOLEAN DIGRAPH APPROACH" (1983). ETD collection for University of Nebraska-Lincoln. AAI8412320.
https://digitalcommons.unl.edu/dissertations/AAI8412320

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