An Investigation into the Degree of Consistency
between the "Contract" and "Operation" of Civil Partnership
and Legal Rules in the Banking System of the Islamic Republic of Iran


Wahab Qilich / Assistant Professor at Allameh Tabataba'i University vahabghelich@gmail.com

Received: 2016/10/02 - Accepted: 2017/02/03



Investigating and solving the problems of civil partnership contract is one of the necessities of Islamic banking. This paper examines the status of civil partnership contract in the Islamic Republic of Iran's banking system in terms of consistency with the legal standards in the stages of concluding and implementing. In this regard, using a comparative-analytical research method and a questionnaire, we will examine the consistency of this contract with legal standards. Based on the research hypothesis, " civil partnership contracts in Iran’s banking system, are not fully compatible with legal standards" in terms of the provisions of the contract and its implementation, and the referred standards include the general and special jurisprudential rules of the company's contracts, as well as its standards in the Organization of Accounting and Auditing of Islamic Financial Institutions (AAOIFI). According to the research findings, which confirm the research hypothesis, the provisions of the civil contract suffer from weaknesses in terms of compliance with the Shari'a. The results of a questionnaire indicate that the banking system of Iran is not in complete agreement with the legal requirements. To solve this problem, it is possible to use such methods as the amendment of the contract provisions, assignment of this contract to specialized and investment banks, establishment of an institution for beyond bank legal supervision to monitor the proper implementation of this agreement, strengthening the supervisory aspects of intra- bank and assigning supervision to intermediary institutions.

Key words: Company Contract, Civil Partnership, Banking System of the Islamic Republic of Iran, Shari'a Standards.      
JEL Classification: G24, E43, Z12, K12.


An Analysis of Macroeconomic Effects
of Securitisation in the Islamic Republic of Iran’s Banking System


Neda Jamshidi / MA in Islamic Economics, University of Isfahan n.jamshidi23@gmail.com

Mohammad Va’ez Barzani / Associate Professor, Department of Economics, University of Isfahan  mo.vaez1340@gmail.com

Behnam Ebrahimi / Ph.D. Student of Economic Sciences, University of Isfahan

Received: 2016/11/08 - Accepted: 2017/03/13                                            bizbehnam@yahoo.com



Today, a large part of the financial needs of investors in financial markets is being funded using modern financial instruments. With reduced risk for financial institutions, securities are new instruments used for providing financial resources. Recent studies on securitization have suggested the use of this instrument and the transformation of granted facilities to securities in order to finance the banks of the country, regardless of its macroeconomic effects. In order to prevent the negative macroeconomic effects of unawareness of the unnecessary development of this process, this paper studies the effects of macroeconomic securitization in the Islamic Republic of Iran’s Banking System. The research method is theoretical analysis within the framework of a random dynamic equilibrium model. The theoretical model used is the economic growth model that includes financial intermediaries (banks), adds monetary and banking sectors and is based on the economic growth model of Frank Ramsey (1928). To transform this model into a suitable model for research, shadow banking system and securities are added to the model; then, the model is simulated through calibration method and using real structural parameters of Iran's economy. Finally, the changes and macroeconomic fluctuations resulting from the use of securities are explained and analyzed. The research findings show that the use of securities to finance domestic banks will have some negative macroeconomic effects, including a decline in economic growth and employment, and an increase in inflation.

Key words: Securities, Islamic Republic of Iran’s Banking System, Macroeconomic Variables, Shadow Banking.         
JEL Classification:
O16, E44, C63.


A Study on Determining the Limits and
Boundaries of the Epistemological Foundations of Islamic Economics

Mohammad Javad Tavakkoli / Assistant Professor of Economics Department, IKI                  

Received: 2016/07/03 - Accepted: 2016/11/29                                                         tavakoli@iki.ac.ir



The epistemology of Islamic economics should mainly address four interconnected questions about the knowledge of Islamic economics’ nature, conditions for obtaining, sources, and validity. Answering these questions forms the limits and boundaries of the epistemological foundations of Islamic economics. Muslim economists have not done much to clarify these limits and to explain the epistemological principles of Islamic economics. Even the separation between religion and Islamic economics in the field of the knowledge of Islamic economics is also confusing. Using an analytical method, this paper examines the boundaries of the epistemological foundations of Islamic economics and the proposed principles. According to the research hypothesis, the epistemological foundations of Islamic economics belong to at least eight areas of the nature of the knowledge of Islamic economics, its value identity, Islamic criterion, structural characteristics of cognition, relation to naming, sources of knowledge, and the relationship between cognition and reality. Based on the research findings, cognitive knowledge in Islamic economics has a combined identity, is value-based, and Islamity of its scientific propositions depends on the propositions of Islamic economic religion. Accordingly, the formation of the Islamic economic religion does not have a foreign condition; however, the realization of the science of Islamic economics depends on the (practical / hypothetical) realization of the institutional structures of the Islamic economic religion in society. Access to the network of the propositions of Islamic economics depends on the use of all three sources of reason, sense and revelation. Finally, Islamic economics is based on reformism and foundation in terms of truth and justification. The epistemological foundations influence both the methodology of Islamic economics and the content of Islamic economics views.

Key words: Epistemology, Economics, Islamic Economics, Epistemological Foundations.

JEL Classification: B41, C1, P4..


Islamic Economics:

Theoretical Wisdom or Practical Wisdom?


Abdolhamid Marefi Mohammadi / Assistant Professor of Economics, University of Isfahan  

Received: 2016/09/26 - Accepted: 2017/02/22                                       hamid.moarefi@gmail.com



The separation of conventional economics from practical wisdom and focus on theoretical wisdom has led to the breakdown of ethics from rationality and the domination of instrumental rationality in economic theories. Decision on the Islamic economics' affiliation with theoretical or practical wisdom can have significant results in explaining the relationship between morality and rationality in the ideas of Islamic economics and also the definition of the concept of economic rationality. Using an analytical method, this paper examines the Islamic economics’ affiliation with theoretical or practical wisdom, its results in the field of economic rationality and its relationship with ethics. According to research findings, the domination of Descartes and Hume's subjectivism in the field of epistemology and modern ethics led to the abandonment of an Aristotelian attitude towards science and practice. Change in the analysis of the relationship between science and practice led to a change in the definition of economics and the development of a rationalist approach in neoclassical economics. According to the hypothesis of the paper, considering the background of the concept of wisdom and reason in the tradition of Islamic philosophy, Islamic economics, based on its moral nature, should base the concept of rationality (practical intellect) on Aristotle's practical wisdom. In this type of practical reason, rationality is not reduced to the pursuit of personal utility or profit, but to the realization of virtues in the direction of human happiness. This perception of rationality requires attention to ethical values ​​and is not reduced to instrumental wisdom.

Key words: Islamic Economics, Neoclassical Economics, Rationality, Practical Wisdom, Theoretical Wisdom.           
JEL Classification: A12, B41, B59, Z12.


Extracting a Theoretical Framework for
the Pathology of Iranian Economy Based on the Components
of the Economic System of the Islamic-Iranian Model of Progress


Mahmoud Issavi / Assistant Professor at Allameh Tabatabaei University         eisavim@yahoo.com

Seyyed Mehdi Zaribaf / Ph.D. student of Allameh Tabatabaei University         zaribaff@gmail.com

Received: 2016/10/29 - Accepted: 2017/03/05



One of the requirements of the pathology of Iran’s economy is providing a theoretical framework for identifying, categorizing, prioritizing and assessing economic harms. In this paper, taking into account the ideas of the Islamic model of progress as a framework for this study, the analytical method is used to express a voluntary understanding of this model and its economic system. In the Islamic-Iranian model of progress, the proposed progress which is based on the provincial justice theory, balancing is introduced in three basic, legal and feasible levels. At the legal balance level, the economic system consists of four main sub-systems (favorable system, legal, decision-making and issues). Given the main function of each system, extracting their components can provide cognitive and functional indicators for the pathology of Iran's economy at different levels. According to the research findings, the adaptation of this model to the Iranian economy indicates that justice can be implemented at any level; however, as this justice moves from the level of objective issues to the optimal system, the depth increases, and, of course, it equally moves away from society’s determinations. According to the proposed framework of the paper, the main problem in the legalization of the Iranian economy is the lack of a link between desirable system, legal system (first and foremost the constitution), decision-making system (general policies of the system), and the system of issues. This has led to stagnation of the capacity for justice at each of these levels.

Key words: Economic System, Islamic-Iranian Model of Progress, Iranian Economy, Provincial Justice, Right-Oriented Balance.

JEL Classification: O10, D6, P4.


A Critical Analysis of the "Global Happiness Index"
with an Islamic Approach


Sajed Samadi Ghorbani / PhD Student in Economics, Azad University of Tehran, North Branch      


Mahdi Toghyani / Assistant Professor, University of Isfahan                       mtoghyani@gmail.com

Received: 2016/07/24 - Accepted: 2016/12/02



One of the newest indicators used to measure community development is the "global happiness index". This index is used to measure the happiness level of people from 7 main indicators such as per capita gross domestic product, social support, healthy life expectancy, freedom to choose lifestyle, generosity, perception of corruption and comfort. Using an analytical method, this paper deals with a critical investigation of this index with an Islamic approach and assessment of its ability to evaluate the level of happiness in Muslim societies. According to the research findings, the global happiness index is not compatible with Islamic teachings in terms of the definition of the concept of happiness and vitality, and the proposed components. Hence, this index cannot provide a reliable tool for a true image of the level of happiness in Islamic societies and, consequently, their degree of progress. The compilation of an index of happiness in an Islamic approach involves the extraction of Islamic components of happiness, and the presentation of a new composite index to measure it.

Key words: Development, Development Indicators, Global Happiness Index and Islamic Components of Happiness.      
JEL Classification: O29, D6, P4