Can religious values reinvigorate the links between development and falāh?

Wahyu Jatmiko and A. Azizon

Journal of Islamic Accounting and Business Research, 2021, vol. 13, issue 1, 32-53

Abstract: Purpose - Previous studies have challenged the Human Development Index’s (HDI) ability to emulate the achievement of falāh (happiness). This paper aims to evaluate the role of religious values in establishing a positive link between the current measurement of development and falāh. Design/methodology/approach - First, this study derives an improved value-loaded development measure from the concept ofMaqasid al-Shari’ah(the higher objectives of Islamic law). Second, this paper compares the calculated Maqasid al-Shari’ah Index (MSI) with the HDI of some Organisation of Islamic Cooperation (OIC) countries by using the parametric pair differencez-test andt-test along with the non-parametric Wilcoxon signed-rank test. Finally, the relationship of both indices and the proxy of falāh are examined by using the ordinary least square and the generalised method of moments estimations. Findings - As far as the religious-led development is concerned, the HDI underestimates OIC countries’ development progress. Here, the MSI can better embody the attainment of falāh than the HDI. Research limitations/implications - This study only covers limited OIC countries due to the data availability issue. Practical implications - The cultural-based development stemming from the religious values proves useful for putting the government effort towards the attainment of the objective of human well-being in the right direction. Originality/value - To the best of the authors’ knowledge, this is the first study examining the empirical relationship between the MSI and falāh.

Keywords: Human Development Index; Sustainable development; Well-being; Falāh (eudaimonia/happiness); Maqasid al-Shari’ah (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jiabrp:jiabr-08-2020-0234

DOI: 10.1108/JIABR-08-2020-0234

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