Ibn Khaldun's Economic Theories Revisited

Abstract

The aim of this study is to analyze Ibn Khaldun's economic theory. Although recognized as a father of sociologists, Ibn Khaldun gets little attention for his contribution to the economic field. His economic thought emphasized Islamic principles and moral values. Furthermore, he first scientifically examined economic activities. In his price and labor theory, he viewed labor and effort as sacred and praiseworthy. The stages of development analyzed the consumer behaviour, market and government's role. In the initial stage, the development takes place by using individual wealth in a specialized sector. Subsequently, the growing wealth leads development more of affluent and luxury goods. In this development process, he advocated the minimum government's role in the economy. Accordingly, low taxes are more efficient and offer incentives to yield higher revenues. One of his major economic contributions is that he pointed out the economic issues and subsequently provided the generalized solutions that were given four hundred years 'before Adam Smith. Therefore, it is not exaggerated to say that he can be considered "the real father of economics (M. Oweiss N. Atiyeh, 1988)."

Keywords

• economic theory
• ibn khaldun
• labor theory
• price
• development