International Journal of Islamic Economics and Finance (IJIEF)
International Journal of Islamic Islamic Economics and Finance (IJIEF) is a journal which is bianually issued (January and July) and initiated by International Program for Islamic Economics and Finance (IPIEF). The publisher of this journal is Universitas Muhammadiyah Yogyakarta. The publication of this journal though tighly-peer reviewed process using Open Journal System (OJS). For the publication, IJIEF only accept research article and publish it in electronic (PDF) version. The electronic publication can be accessed openly on the website http://journal.umy.ac.id/index.php/ijief/index. IJIEF commit to embrace the best research article in islamic economics and finance fields from the whole world and publish it consistently.
Articles
192 Documents
<![CDATA[Integration of Knowledge (IoK) Methodological Reasoning of Islamic Economics (IE) as the Wisdom of Humanity: A Heterodox Economic Approach ]]>
<![CDATA[Omercic, Jasmin]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i2.11658
<![CDATA[The world increasingly needs an alternative approach to economic development. This paper endorses the Integration of Knowledge (IoK) approach as the wisdom of humanity through Islamic Economics (IE). A review of relevant literature through qualitative methodologies of library research, discourse and critical content analysis highlights the civilisational practices of integration, how development of economics diverged from such practices and how heterodox approaches reacted to such divergence. A section on learning the wisdom of humanity from each other emphasizes the inevitable historical civilizational integration (IoK) and exchange of knowledge. It follows with a literature review of the development of mainstream economics, how it abandoned such historical civilizational practice and its sound foundations, namely ontology, epistemology, axiology and methodology. A highlight of heterodox economics (HE) responses reveals the alternatives to the mainstream-focused positivistic approach to economics. The inadequacy of those alternatives led us to demonstrate Muslim responses and the centrality of IE as a comprehensive alternative heterodox economic approach. The analysis shows how IE grew along Islamisation of Knowledge (IOK) as two parallel and major intellectual iṣlaḥ (reform) and tajdīd (renewal) movements. A brief review of the development of each shows the potential of IE’s IoK methodological reasoning to revive the IoK approach in economics as the wisdom of humanity. The sound IE philosophical foundations, namely ontology, epistemology, axiology and methodology, have a major impact in that process. Thus, utilising the core IoK objective within IOK together with IE contributions shape the process of overcoming problems and issues of mainstream economics. Actionable recommendations to practitioners and academics depict how the IE approach to economics could be implemented and sustained along SDGs agenda.]]>
<![CDATA[ISLAMIC GOLD DINAR: THE HISTORICAL STANDARD ]]>
<![CDATA[Meera, Ahamed Kameel Mydin]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 1, No 1 (2018): IJIEF Vol 1 (1), July 2018 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.116
<![CDATA[Lately, there have been questions on what the standards for gold dinar and silver dirham should be. Since the dinar and dirham indeed formed the Shari’ah monetary standards from the time of the Prophet pbuh, our work can, therefore, only involve in the rediscovery of that classical standard. Henceforth no parties or organizations can come up with their own standards. Since the Islamic gold dinar[1] did not come into existence until about 50 years after the Prophet’s pbuh demise, it is obvious from history that the solidus of the Eastern Roman Byzantine Empire was the monetary basis for the Shari’ah. Hence the best way to determine the standard is to look at the definition given by its issuer, the Byzantine Empire. Coins unearthed by archeologist cannot be relied upon for this purpose because such coins generally suffer from wear and possible tempering like clipping etc. It was found that the actual historical standard for the dinar to be 4.5gm of pure gold and the dirham to be 3.15gm of pure silver. However, since the role of dinar is simply as a measure of value that depends on the gold-content of the coin and if zakat is based upon 1-year’s provision of foodstuff and not the physical weight of dinars, then the 4.25gm dinar of pure gold and 2.975gm dirham of pure silver, as those circulated during the Prophet’s pbuh era, is the standard since the Prophet had said, “The system of weights and measures is the system of the people of Medina. ]]>
<![CDATA[Fintech and Islamic Finance: Literature Review and Research Agenda ]]>
<![CDATA[Hasan, Rashedul]]>;
<![CDATA[Hassan, Mohammad Kabir]]>;
<![CDATA[Aliyu, Sirajo]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3, No 1 (2020): IJIEF Vol 3 (1), January 2020 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.2122
<![CDATA[Fintech revolution started with the introduction of credit cards in 1960 and have been revolutionized with blockchain technologies. Integration of Fintech based solution with Islamic finance has gained interest among academics. However, the lack of literature evidence on this issue has motivated us to conduct a systematic literature review on Islamic Fintech. We have identified fourteen documents relevant to the context of the study and conducted the content and thematic analysis. An extensive review of past literature allows us to identify Shari’ah compliance as one of the major challenges for the growth of Islamic fintech. In addition, we conclude that Islamic fintech might pose challenges for Islamic Financial Institutions (IFIs) in terms of operational efficiency, customer retention, transparency and accountability. We contribute by providing insights on the challenges faced by the Islamic finance industry toward integrating Fintech based solutions with reference to past studies and indicate areas for future studies that could reduce the gaps in Islamic Fintech literature.]]>
<![CDATA[Reducing Poverty through Optimization of Zakat on Agricultural and Profession ]]>
<![CDATA[Pratama, Siectio Dicko]]>;
<![CDATA[Yuni, Rezha Nursina]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3 (2020): IJIEF Vol 3(SI), Special Issue: Islamic Social Finance and Ethics ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.3237
<![CDATA[Zakat is a system in Islam that is designed to allocate the wealth from the rich to the poor and the needy. The effectivity of zakat in reducing poverty has been proven in the history of Islam. Nevertheless, nowadays, Zakat is still unable to eliminate poverty. Bad planning and organizing of zakat are the main reason for that especially the less information about the potency of zakat in each region. Indonesia is a country that is rich in Natural Resources and has many workforces. So, Indonesia may have hidden potential of agricultural and professional zakat. This study tries to calculate the potency and the impact of the zakat on reducing poverty. The effect will be examined descriptively and statistically and also will be presented by mapping all the provinces in Indonesia. The result shows that there are about 16.1 trillion rupiahs of zakat potential furthermore able to reduce the poverty rate in Indonesia for 0.75 percent. DKI Jakarta is the most affected province by zakat because its poverty rate reaches 0.22 percent. To implement this theory in real practice, the utilization of the mosque to distribute zakat funding where BAZNAS represents as the manager is suggested.]]>
<![CDATA[PROMOTING A SHARING ECONOMY IN THE ISLAMIC FINANCE INDUSTRY: A STUDY OF SELECTED OIC COUNTRIES ]]>
<![CDATA[Razak, Dzuljastri Abdul]]>;
<![CDATA[Abdul-Wahab, Abdul-Hamid]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 1, No 1 (2018): IJIEF Vol 1 (1), July 2018 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.114
<![CDATA[Islamic finance has been in existence for the past centuries. Nonetheless, the realization of the real objectives of the industry is still a dream yet to be true. The goal of Islamic finance is to promote a sharing economy whereby money is not concentrated in the hands of a few individuals. This purpose of this study is to investigate the application of mudarbah and musharakah concepts which facilitate a sharing economy where profit and loss is shared between the bank and customer compared to debt financing that utilizes murabahah concept. The methodology is based on secondary data obtained from central banks of five selected OIC countries. The results indicated that Indonesia, Sudan and Bangladesh recorded the highest amounts in terms of mudarabah financing while Malaysia, Indonesia and Pakistan recorded the highest amounts in terms of musharakah financing. The results also indicated that murabahah financing is high in Malaysia, Bangladesh, Indonesia and Sudan. Pakistan registered the lowest amount in terms of murabahah financing. ]]>
<![CDATA[Understanding Consumer Receptiveness of Mortgage-Based Islamic Social Finance Using a Maqasid Framework: A Preliminary Study ]]>
<![CDATA[Amin, Hanudin]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 2, No 1 (2019): IJIEF Vol 2 (1), July 2019 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.2115
<![CDATA[This study proposes a workable model of the mortgage-based Islamic social finance (MBISF) and to test the model acceptance using a maqasid framework empirically. Three battery items are intended to measure each latent variable. As for independent variables, the latent variables are an educational programme, mortgage welfare, consumer justice and Islamic debt policy, whilst as for a dependent variable, the latent variable is consumer receptiveness.Using Structural Equation Modelling (SEM) – Partial Least Squares or SEM-PLS, this study finds out that educational programme, mortgage welfare, consumer justice and Islamic debt policy are instrumental to lead the consumer receptiveness of MBISF. These results suggest that the elements of maqasid al-Shariah (education, welfare, justice and debt policy) are significant to consumer receptiveness of MBISF.The relationships established are then called as The Maqasid Theory of Consumer Behaviour (MTCB).Though the present work produced a fruitful outcome, yet the generalisation of the findings is somewhat limited and the application of the theory used in consumer behaviour is relatively fallen short or even unpopular in the conventional thinking. The results obtained provide better planning for Islamic banks to market their mortgages effectively.]]>
<![CDATA[Islamic Business Ethics Practice among Muslim Entrepreneurs in Kano Metropolis, Nigeria ]]>
<![CDATA[Sulaiman, Sagir Muhammad]]>;
<![CDATA[Muhammad, Aliyu Dahiru]]>;
<![CDATA[Sabiu, Tasiu Tijjani]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3 (2020): IJIEF Vol 3(SI), Special Issue: Islamic Social Finance and Ethics ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.3233
<![CDATA[There are persistent increasing number of scenarios in Singer and Dawanau markets of Kano metropolis which are seen as unethical among which includes deception, inappropriate weight and measures, hoarding and price manipulation as well as false-swearing to support a sale. This study therefore assesses the determinants of Islamic business ethics practices among Muslim entrepreneurs in Kano metropolis, Nigeria. Structural Equation Modelling (SEM) technique is employed in analysing the hypothesized model of the study. The results indicate that entrepreneurs fairly adhere to Islamic business ethics practice while legal and organizational factors significantly affect Islamic business ethics, but Individual factors do not. The study recommends the need for Kano State Ministry of Commerce and Industry in collaboration with market organizational leaders to engage in public enlightenment on the importance of business as an act of worship (Ibadat). It was suggested that organization leaders i.e. Market leaders (trade union leaders) should liaise with Kano state Shariah Commission to set standard for Islamic business ethics whereas Hisbah Board to enforce compliance. The study further suggests that the concept of ethics should be incorporated in teaching and learning curriculum.]]>
<![CDATA[An Empirical Analysis of Islamic Banking (IBs) Contribution to Indonesia’s Inclusive Growth ]]>
<![CDATA[Ibrahim, Muhammad Yusuf]]>;
<![CDATA[Indra, Indra]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4 (2021): IJIEF Vol 4 (SI), Special Issue: Islamic Banking ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i0.10342
<![CDATA[The research is aim to attest and assess empirically the contribution of Islamic banking (IBs) on the inclusive growth in Indonesia. By taking a trial-stage method i.e. descriptive analysis to elaborate a statistical data, autoregressive distributed lag (ARDL) model to assess empirically the contribution in a long-term, and error correction model (ECM) to assess the contribution in a short-term empirically. The findings are, total deposits and total financing only contribute positively significant into GDP and gini ratio in a long-term, that similiar with the previous study. Then, a total financing contribute negatively to all indicators of inclusive growth in a long-term, but, its only significance on GDP and gini ratio. But, it was contribute significantly to all indicators in a short-term. So. The findings was only evidence the significance contribution of IBs on inclusive growth in a short-term. Based on it, a long-term contribution of IBs still cathegorized as the area that requires an extentions in order to accomplish it. Â ]]>
<![CDATA[Maqasid-based Consumer Preference Index for Tawarruq Personal Financing (TPF) ]]>
<![CDATA[Amin, Hanudin]]>;
<![CDATA[Suhartanto, Dwi]]>;
<![CDATA[Ghazali, Mohd Fahmi]]>;
<![CDATA[Ali, Muhammad]]>;
<![CDATA[Rizal, Hamid]]>;
<![CDATA[Abdul Razak, Dzuljastri]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 5, No 1 (2022): IJIEF Vol 5 (1), January 2022 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v5i1.11823
<![CDATA[Relatively, maqasid al-Shariah is a missing dimension element in the available tawarruq personal financing, resulting in a convergence of this facility and its traditional counterpart. This work examines the consumer preference of tawarruq personal financing using the maqasid-based consumer preference index (MCPi). Drawing upon the MCPi, the present study examines consumer preference on the offered Tawarruq personal financing by 7 Islamic banks in Malaysia based on valid 456 usable questionnaires. The primary findings obtained indicate that all banks somewhat have a moderate MCPi. These include Bank Islam Malaysia Berhad (BIMB), Bank Muamalat Malaysia Berhad (BMMB), Maybank Islamic, CIMB Islamic, RHB Islamic, Kuwait Finance House and Al-Rajhi Bank. This study examines a new approach to measure consumer preference using the MCPi. Our contributions are confined to these particular variables – Educating Customer, Establishing Justice and Promoting Welfare. Our study also limits its perspective on the general context of tawarruq personal financing. Future works may provide different perspectives on these interrogations. This study provides a new index for Islamic banks to manage tawarruq personal financing products according to maqasid al-Shariah effectively. This study introduces a new measure of consumer preference of tawarruq personal financing namely the MCPi in the context of Malaysia.]]>
<![CDATA[The Efficiency of Indonesian Islamic Rural Banks: A Stochastic Frontier Analysis ]]>
<![CDATA[Dian Agustina]]>;
<![CDATA[Mahfud Sholihin]]>;
<![CDATA[Annisa Fithria]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 1, No 2 (2019): IJIEF Vol 1 (2), January 2019 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.1212
<![CDATA[Banking plays an important role in economy acting as an intermediation institution and funding sources for business. When a bank is inefficient in the use of cost, there will be improperly used input, hindering the bank to realize its roles, functions, and objectives. Therefore, analysis of bank efficiency is strongly required. This study aims to measure and analyze the technical efficiency of Indonesian Islamic rural banks by using balanced panel data of Indonesian Islamic rural banksfromquartile I 2011 to quartile IV 2016. The sample includes 58 Islamic rural banks with total 1,392 observations. By using stochastic frontier analysis,the result shows that the average technical efficiency of IndonesianIslamic rural banksreached 86 percent and there are still 14 percent that can be optimized. Overall, the average efficiency of Indonesian Islamic rural banksincreases over the research period. In addition, this study also finds that big banks are more efficient than small banks.]]>
