Assessing the Synthesized Index of Economic Justice with an Islamic Approach in Iran (1995-2018)

Abstract

Compound indices in economic literature are proper criteria to evaluate the function and the gap between the status quo and the goals of economic programs and policies. This research is aimed to present and evaluate the compound indices of economic justice from the viewpoint of Islamic approach using OECD method. The findings of the research show that “fair distribution of resources”, “paying attention to the rights of the production sources and factors and considering the rights of future generations”, “rewarding the production factors according to their desert and contribution”, “reproduction of income and wealth” and “thinking about the improvement of welfare of the society” are considered as the main parameters of the compound indices of economic justice considering the Islamic approach. Furthermore, the positive correlations between “physical index of the quality of life”, “the measure of the benefit from welfare facilities”, “efficiency of the production factors”, “Amartya Sen's welfare index”, “the ratio of the staff services compensations in national accounts to GDP” and “the ratio of investment in infrastructure facilities and equipment to harvesting natural resources index” are concluded in one hand. Negative correlation of the Foster, Greer and Thorbecke (FGT) Index with the procedure of economic justice is demonstrated on the other hand. According to the calculations, compound index of economic justice regarding Islamic approach has had a growing trend in Iran from 1995 to 2018 except for a few.

Keywords

• islamic economics
• economy of iran
• index evaluation
• compound indices
• economic justice