Al-Kharaj: Journal of Islamic Economic and Business
Vol. 7 No. 4 (2025): All articles in this issue include authors from 3 countries of origin (Indonesi

The Relevance of Ibn Tufail's Economic Theory to Modern Economic Thought: A Critical Analysis of the Concept of Rationality and Its Implications for Islamic Economic Development

Muhammad Widinur Caronge (Unknown)
Siradjuddin (Unknown)
Idris Parakkasi (Unknown)



Article Info

Publish Date
16 Dec 2025

Abstract

The purpose of this study is to analyze the relevance of Ibn Tufail's theory of rationality in Hayy ibn Yaqzan to modern economic thought and its implications for Islamic economic development. This study uses a qualitative method based on a philosophical literature review. This study highlights two main aspects the epistemology of rationality, which emphasizes the independence of reason and empirical experience, and the spiritual ethics of economics, which balances the material and moral dimensions. The results of the study indicate that Ibn Tufail's rationality differs from the purely utility oriented homo economicus. Ibn Tufail offers an integrative rationality that unites reason, ethics, and spirituality, positioning humans as socially and divinely responsible caliphs. The implications of this study can be the basis for formulating Islamic economic policies that are just, sustainable, and oriented towards maqasid al-shariah. This study also recommends further research to develop a model of Islamic rationality in public policy and contemporary economic practice.

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Journal Info

Abbrev

alkharaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Al-Kharaj, Journal of Islamic Economic and Business is peer-reviewed journal published by program studi ekonomi syariah , Institut Agama Islam Negeri (IAIN) Palopo. Al-Kharaj focus on the research of Islamic Economic and Business. The aims of this journal is to explore and develop economic related ...