IDEAS home Printed from https://ideas.repec.org/a/ris/isecst/0031.html
   My bibliography  Save this article

Non-Monetary Poverty Measurement in Malaysia: A Maqāṣid al-Sharīʿah Approach

Author

Listed:
  • SALADIN ABDUL RASOOL, MOHAMED

    (Universiti Teknologi MARA)

  • SALLEH, ARIFFIN MOHD

    (Universiti Teknologi MARA)

Abstract

Islamic organizations such as zakāt institutions conceptualize poverty from the monetary perspective to identify the poor group. Despite being the most common method of measuring poverty in Malaysia and many other countries, there are some drawback in the monetary approach. For instance, non-monetary factors such as type of dwelling, ownership of wealth and healthcare which reflect quality of life are not included. Thus, a more comprehensive poverty measurement is deemed appropriate to reflect poverty. The objective of the paper is to propose an Islamic poverty measurement, proxied by Islamic Poverty Index (IPI). The present study is a quantitative study consisting of three main stages. Firstly, consensus of scholars were sought in deciding the dimensions of the IPI and their indicators. Secondly, weightage determination of each of the dimensions and thirdly, cutoff points or thresholds were determined. The results of the study confirmed that there were five dimensions of IPI incorporating maqāṣid alSharīʿah principles with religion and physical self with the highest weighted dimensions followed by knowledge, offspring and wealth. In addition, thirteen variables were identified as the main components of the IPI. Thus, this empirical study was able to propose a non-monetary measurement that is envisaged to reflect the multidimensional phenomena of poverty in a more holistic way and is expected to have an impact on Islamic organizations as it given new perspective of measuring poverty.

Suggested Citation

  • Saladin Abdul Rasool, Mohamed & Salleh, Ariffin Mohd, 2014. "Non-Monetary Poverty Measurement in Malaysia: A Maqāṣid al-Sharīʿah Approach," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 22, pages 33-46.
    • Handle: RePEc:ris:isecst:0031
    as

    Download full text from publisher

    File URL: http://www.irti.org/English/Research/Documents/IES/073.pdf
    File Function: Full text
    Download Restriction: no
    File URL: http://www.irti.org/English/Research/Documents/IES/164.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ingham, Geoffrey, 2004. "The nature of money," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 5(2), pages 18-28.
    2. Mohammed Obaidullah, 2005. "The Islamic Financial Services الخدمات المالية الإسلامية," Books published by the Islamic Economics Institute, KAAU., King Abdulaziz University, Islamic Economics Institute., edition 1, number 40, July.
    3. Khan, Tariqulah, 1995. "Redeemable Islamic Financial Instruments and Capital Participation in Enterprises (Research Paper)," Occasional Papers 32, The Islamic Research and Teaching Institute (IRTI).
    4. Makinen, Gail E., 1981. "Money, Banking, and Economic Activity," Elsevier Monographs, Elsevier, edition 1, number 9780124689503.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sadique, Muhammad Abdurrahman, 2009. "Sharī Ah Position On Ensuring Presence Of Capital In Joint Equity Based Financing," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 17, pages 1-19.
    2. Amir-Ud-Din, Rafi, 2014. "Maqāṣid al-Sharīʿah: Are We Measuring The Immeasurable?," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 22, pages 1-32.
    3. Josh Ryan-Collins, 2015. "Is Monetary Financing Inflationary? A Case Study of the Canadian Economy, 1935-75," Economics Working Paper Archive wp_848, Levy Economics Institute.
    4. Tommaso Brollo, 2019. "Money as a political institution in the commentaries of Albert the Great and Thomas Aquinas to Aristotle?s "Ethica Nicomachea"," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 8(2), pages 35-61.
    5. Matias Vernengo, 2005. "Economics Ideas and Institutions in Historical Perspective: Cairú and Hamilton on Trade and Finance," Working Paper Series, Department of Economics, University of Utah 2005_08, University of Utah, Department of Economics.
    6. Jane S Pollard, 2007. "Making Money, (Re)Making Firms: Microbusiness Financial Networks in Birmingham's Jewellery Quarter," Environment and Planning A, , vol. 39(2), pages 378-397, February.
    7. Klaus Kraemer & Florian Brugger & Luka Jakelja, 2017. "Social Usage of Money: Which Roles Does Money Play in the Life-Cycle-Stage of Children?," Working Paper Series, Social and Economic Sciences 2017-04, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    8. repec:dau:papers:123456789/7642 is not listed on IDEAS
    9. Engelbert Stockhammer & Collin Constantine & Severin Reissl, 2020. "Explaining the Euro crisis: current account imbalances, credit booms and economic policy in different economic paradigms," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 43(2), pages 231-266, April.
    10. Stein, Julian Alexander Cornelius & Braun, Dieter, 2019. "Stability of a time-homogeneous system of money and antimoney in an agent-based random economy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 520(C), pages 232-249.
    11. Pejman Abedifar & Shahid M. Ebrahim & Philip Molyneux & Amine Tarazi, 2015. "Islamic Banking And Finance: Recent Empirical Literature And Directions For Future Research," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 637-670, September.
    12. Dawood Ashraf, 2016. "Does Shari’ah Screening Cause Abnormal Returns? Empirical Evidence from Islamic Equity Indices," Journal of Business Ethics, Springer, vol. 134(2), pages 209-228, March.
    13. Eric Knight & Dariusz Wójcik, 2020. "FinTech, economy and space: Introduction to the special issue," Environment and Planning A, , vol. 52(8), pages 1490-1497, November.
    14. Geoffrey Harcourt & Peter Kriesler, 2012. "Introduction [to Handbook of Post-Keynesian Economics: Oxford University Press: USA]," Discussion Papers 2012-33, School of Economics, The University of New South Wales.
    15. Pejman Abedifar & Philip Molyneux & Amine Tarazi, 2013. "Risk in Islamic Banking," Review of Finance, European Finance Association, vol. 17(6), pages 2035-2096.
    16. Andrew C. Worthington & Alsadek H. Gait, 2009. "Libyan Business Firm Attitudes towards Islamic Methods in Finance," Discussion Papers in Finance finance:200910, Griffith University, Department of Accounting, Finance and Economics.
    17. L. Randall Wray, 2014. "Outside Money: The Advantages of Owning the Magic Porridge Pot," Economics Working Paper Archive wp_821, Levy Economics Institute.
    18. Hugh Whittaker, 2017. "Premature financialization: a conceptual exploration," Working Papers halshs-01680406, HAL.
    19. Krarup, Troels, 2016. "Economic discourse and the European integration of financial infrastructures and financial markets," MaxPo Discussion Paper Series 16/2, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    20. Di Muzio, Tim, 2023. "Capitalism, Money and Inequality in the World," EconStor Open Access Book Chapters, in: Transitioning to Reduced Inequalities, pages 63-82, ZBW - Leibniz Information Centre for Economics.
    21. Molly Scott Cato & Peter North, 2016. "Rethinking the Factors of Production for a World of Common Ownership and Sustainability," Review of Radical Political Economics, Union for Radical Political Economics, vol. 48(1), pages 36-52, March.

    More about this item

    Keywords

    Poverty; Multidimensional; Islamic Poverty Index; Monetary Poverty Measurement;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:isecst:0031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: IRTI Staff or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/irisbsa.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.