Journal Islamic Economic Minangkabau

Impact of Capital Formation on Nigeria Economic Growth: An Econometric Analysis

Chiedozie Chiedozie — 2025-02-17

The paper investigated the impact of capital formation on economic growth in Nigeria. The data were collected from Central Bank of Nigeria (CBN) statistical bulletin (2023).To analyze the impact of capital formation, stock market capitalization, human capital formation, inflation rate and interest rate on economic growth, the study employed Ordinary least square (OLS) technique. To test for the properties of time series, phillip-perron test was used to determine the stationarity of the variables and it was discovered that gross fixed capital formation and economic growth are integrated of order zero (I(0), Johasen co integration test was employed to determine the order of integration while error correction model was employed to determine the speed of adjustment to equilibrium. The empirical findings suggest that capital formation has positive and significant impact on economic growth in Nigeria for the period under review. This result corroborate the findings of Bakare (2017), Orji and Mba (2020). Stock market also showed a positive impact, while interest rate has a negative impact on economic growth in Nigeria for the period under review but the impact is statistically insignificant. The result further shows a long run relationship between capital formation and economic growth in Nigeria for the period under review. Therefore emphasis should be placed on accumulating capital in Nigeria as this will accelerate growth and development in Nigerian economy. The Nigerian stock market should be deepened more to enhance their contribution to the growth of the domestic economy.

GREEN MAQASID AND ISLAMIC ETHICAL FOUNDATIONS FOR SUSTAINABLE ECONOMIC DEVELOPMENT

Haruni Ode — 2025-02-09

This study explores the integration of Green Maqasid al-Shari'ah and Islamic ethical principles as a framework for sustainable economic development in the Muslim world. Drawing on classical Islamic jurisprudence and contemporary sustainability discourse, the research highlights how the preservation of essential objectives—religion, life, intellect, progeny, and wealth—can be expanded to include environmental protection and intergenerational equity. Through a qualitative approach supported by literature review and conceptual analysis, the study reveals that Islamic economic ethics—rooted in values such as justice (‘adl), moderation (wasatiyyah), trust (amanah), and stewardship (khilafah)—offer a holistic and value-driven foundation for promoting sustainability. Moreover, Green Maqasid provides an ethical lens to evaluate policies, institutions, and development programs, ensuring they align with both spiritual values and ecological imperatives. The paper concludes that embedding these ethical foundations in economic planning can contribute significantly to achieving the Sustainable Development Goals (SDGs) in Islamic contexts, particularly in fostering responsible consumption, inclusive growth, and environmental justice.

Integrating Maqashid al-Shariah into Sustainable Investment Instruments: A Conceptual Framework for the Green Economy Era

Deni Maulana — 2025-02-12

The green economy era demands a transformative shift in investment paradigms toward sustainability, ethics, and socio-environmental responsibility. Within this context, integrating Maqashid al-Shariah—the higher objectives of Islamic law—into sustainable investment instruments emerges as both a normative imperative and strategic framework. This conceptual study aims to develop a framework that aligns the five core objectives of Maqashid al-Shariah—protection of religion, life, intellect, progeny, and wealth—with sustainability principles, particularly in green sectors such as renewable energy, eco-friendly technologies, and the circular economy. Using a qualitative approach based on literature review, the study explores the compatibility between Islamic ethical foundations and global Environmental, Social, and Governance (ESG) criteria in investment practices. The proposed framework demonstrates that embedding maqashid-oriented values enhances both the ethical legitimacy and spiritual coherence of sustainable investments while offering a reformative pathway for Islamic finance to address global ecological and social challenges. This paper contributes to the discourse on designing progressive and contextually relevant Shariah-compliant investment instruments in the green economy era.

Governance and Anti-Corruption in Islamic Public Finance: Zakat-State Integration and Participatory Budgeting Models

Mahfuz Mahfuz — 2025-02-16

This study examines the role of governance and anti-corruption strategies in Islamic public finance, with a specific focus on the integration of zakat into state fiscal systems and the application of participatory budgeting models. In contemporary contexts, zakat—as a key Islamic fiscal instrument—holds significant potential to promote social justice, transparency, and accountability, particularly when systematically incorporated into public governance structures. The research explores how good governance practices, community participation, and robust oversight mechanisms can prevent the misuse of zakat funds and enhance their distribution efficiency. Moreover, participatory budgeting is considered an innovative approach to reinforce public trust in both zakat institutions and government bodies by actively involving citizens in planning and budget supervision processes. Using a qualitative methodology based on literature reviews and case studies from selected Muslim-majority countries, the findings reveal that the synergy between Sharia principles, clean governance, and civic engagement can be an effective tool in combating corruption and reinforcing the legitimacy of Islamic public finance. This study contributes to the development of sustainable and socially just Islamic fiscal policies.

Decolonizing Global Economics: Post-Capitalist Visions Through the Lens of Islamic Thought

Rahmat Ramdhani — 2025-02-25

This paper explores the prospects of decolonizing global economics by engaging with post-capitalist visions rooted in Islamic thought. Contemporary economic systems, largely shaped by Western capitalist paradigms, have perpetuated structural inequalities, environmental degradation, and cultural homogenization. Islamic economic principles offer an alternative epistemology that emphasizes justice (‘adl), communal welfare (maslahah), ethical wealth circulation (zakat, waqf), and spiritual accountability. Through critical analysis, this study examines how Islamic frameworks challenge the colonial legacy of economic domination and contribute to the discourse on plural economic futures. The paper highlights the potential of Islamic economics to inform sustainable and equitable development models, fostering a shift from exploitative growth toward value-based, inclusive systems. In doing so, it calls for the reimagining of economic order beyond capitalist structures by integrating indigenous, faith-based, and ethical paradigms into global economic debates.