RETHINKING ISLAMIC ECONOMICS AND FINANCE: PAVING THE WAY FORWARD

[...]the failure in the paradigm push for Islamic economics is caused by over reliance on past rulings in sharī'ah and opinions of previous scholars that may not be relevant in today's economic environment, which is the common malady across Islamic knowledge due to lack of ijtihad. [...]many second-generation Islamic economists had become apologetic and tend to regard modern economics as a truly objective science where Islamic tenets could be compromised to accommodate economic theories. [...]to Arif (1985) and Furqani (2015), Mahyudi and Abdul Aziz (2017) argue that the notion of universal man is a better alternative than homo Islamicus to describe the behavior of the individual unit in an Islamic economy. Furthermore, the SFA method allows output to be affected by for both technological inefficiency relative to the stochastic frontier, and external random shocks beyond the control of producers (Cullinane et al., 2006). Since DEA regards all random errors as indications of inefficiency, DEA tends to set higher targets that make increase the distance between performance target and current achievements (Thanassoulis, 1993).