nep-isf New Economics Papers
on Islamic Finance
Issue of 2019‒09‒16
three papers chosen by

  1. New Islamic Economic Index By REEM ALQADIRI; MANAL ALMUSFER; Khaled AlMawazini
  2. The persistence of global terrorism By Simplice A. Asongu
  3. The Incompatibility of the Sharia Law and the Cairo Declaration on Human Rights in Islam with the European Convention on Human Rights By Titus Corlățean

  1. By: REEM ALQADIRI (Gulf University of Science and Technology); MANAL ALMUSFER (Gulf University of Science and Technology); Khaled AlMawazini (Gulf University for Science and Technology)
    Abstract: The Islamic economic index developed by Rehman and Askari (2010) has many limitations. This paper proposes new Islamic economic index and overcomes the limitations of Rehman and Askari (2010). Our proposed index IFI index is constructed by using principal component analysis (PCA). The PCA allows us to reduce the correlated observed variables to a smaller set of independent composite variables. Our proposed index has three main areas, namely, economic opportunities, economic freedom and social infrastructure. Our main result surprisingly shows that the first 15 countries out of a total of 132 countries are not part of the organization of Islamic cooperation, where Finland topped up the first place in the application of indicators of the Islamic economy for 2016.
    Keywords: Islamic Economic; Voice and Accountability; Government Effectiveness; Regulatory Quality; Rule of Law; Control of Corruption; Gender Equality; Human Development; Islamic Finance Country; Monopoly Index.
    Date: 2019–06
  2. By: Simplice A. Asongu (Yaoundé/Cameroon)
    Abstract: This study investigates persistence of global terrorism in a panel of 163 countries for the period 2010 to 2015. The empirical evidence is based on Generalised Method of Moments. The following findings are established. First, persistence in terrorism is a decreasing function of income levels because it consistently increases from high income (through upper middle income) to lower middle income countries. Second, compared to Christian-oriented countries, terrorism is more persistent in Islam-oriented nations. Third, landlocked countries also reflect a higher level of persistence relative to their coastal counterparts. Fourth, Latin American countries show higher degrees of persistence when compared with Middle East and North African (MENA) countries. Fifth, the main determinants of the underlying persistence are political instability and weapons import. The results are discussed to provide answers to four main questions which directly pertain to the reported findings. These questions centre on why comparative persistence in terrorism is based on income levels, religious orientation, landlockedness and regions.
    Keywords: Terrorism; Persistence; Development
    JEL: C52 D74 F42 K42 O38
    Date: 2019–01
  3. By: Titus Corlățean (“Dimitrie Cantemir†Christian University, Bucharest)
    Abstract: The Resolution 2253 (2019) of the Parliamentary Assembly of the Council of Europe deals with the question if the Sharia law (“Islamic law†) and the 1990 Cairo Declaration on Human Rights in Islam are compatible with the European Convention on Human Rights. This question was raised within the context of the endorsement of the Cairo Declaration by three member states of the Council of Europe, states that also ratified the European Convention upon their accession to the Council of Europe (Albania, Azerbaijan, Turkey). The same question is relevant also for Russia and Bosnia and Herzegovina, but also for Jordan, Kyrgyzstan, Morocco and Palestine, whose parliaments enjoy partner for democracy status with the Parliamentary Assembly of the Council of Europe. The European Court of Human Rights (the Grand Chamber) had already in 2003 the opportunity to give an answer to the above mentioned question: it “concurs in the Chamber’s view that Sharia is incompatible with the fundamental principles of democracy, as set forth in the Convention.†Based on its own assessment and a comprehensive report adopted by the Committee on Legal Affairs and Human Rights, the Strasbourg Parliamentary Assembly concludes on the topic that “the various Islamic declarations on human rights..., while being more religious than legal, fail to reconcile Islam with universal human rights, especially insofar as they maintain the Sharia law as their unique source of reference. That includes the 1990 Cairo Declaration on Human Rights in Islam…†This study focuses on the analysis of the Assembly’s report and resolution and also on country specific recommendations.
    Keywords: European Convention, Human Rights, Sharia, Cairo Declaration, incompatibility
    Date: 2019–04

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