Habib Ahmed

Habib Ahmed
Durham University | DU · Durham University Business School

Doctor of Philosophy

About

44
Publications
31,648
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1,618
Citations

Publications

Publications (44)
Chapter
Despite calls to expand and implement the concept of Maqāṣid al-Sharīʿah, it has been rarely utilized in economics and development studies. This paper fills this gap and proposes a framework to assess the socio-economic development of Muslim societies based on the Maqāṣid principles. It is argued that human well-being/poverty is a central theme in...
Chapter
Though historically waqf played an important role in providing variety of social services in Muslim societies, its position has diminished significantly during contemporary times. The paper assesses the latent status of waqf by examining the legal constraints that waqf faces relative to other non-profit organizations. While Shariah principles and n...
Article
This article provides a framework for applying the principles of Islamic legal methodology to determine the optimal Shariah screening standards for Islamic equity markets. It is argued that using maslahah mursalah (unrestricted benefit) is an appropriate method for identifying appropriate financial standards and its principles stipulate that the be...
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Using deficit financing by increasing borrowing at lower interest rates has the potential to increase debt to levels that are not sustainable and can create further economic problems in the longer term. To understand the Islamic perspective on deficit financing, two features of government spending need to be recognized. First, government spending c...
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This article develops a conceptual framework for ethical decision‐making in Islamic financial institution based on the Islamic methodological approaches on ethics. While making use of the similarities between the scientific method and the Islamic jurisprudence method, a framework is developed by means of argumentation and reasoning to integrate Sha...
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This paper examines the status of the legal and regulatory framework for consumer protection in Malaysia, an emerging economy. Using leximetrics and notions of incomplete law, the paper explores the financial consumer protection regime in the country by examining two aspects of the legal framework: the legal infrastructure and typology of laws. The...
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Islamic finance continues to gain popularity regionally, internationally and both among the Muslim and non-Muslim countries. The Islamic Financial Institution (IFI) differs from its conventional counterpart in its governance structure. It is imperative for the IFI to maintain Shari'ah compliance in all its dealings. Hence, an essential element in t...
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This study examines the decoupling hypothesis between Islamic and conventional capital markets by analysing the dynamic interdependencies among conventional stock, Islamic stock, bonds and sukuk markets in Malaysia over the period January 3, 2007 to March 31, 2017. Empirical findings on the total spillover index show that, on average, one third of...
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Purpose This paper aims to develop a conceptual framework of inclusive Islamic financial planning (IFP) by combining the traditional Islamic institutions of zakat and awqaf with contemporary notions of financial planning, financial inclusion and financial literacy that caters to the short-term and long-term financial goals of the poor. Design/meth...
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Basel III was initiated after the recent global financial crisis to strengthen the regulatory regime for the banking sector. As liquidity problems faced by banks were a key feature of the crisis, Basel III has added liquidity requirement ratios in addition to reinforcing the capital requirements. Specifically, the Liquidity Coverage Ratio (LCR) has...
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The purpose of this study is to examine the effectiveness of linkage program between Islamic Banking (IB) and Baitul Maal Wat Tamwil (BMT) on BMT financing growth and profitability. This study also aims to compare three linkage models and to explore the keys factors that affect the implementation of linkage program. To achieve these objectives, bo...
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One of the controversial products used by the Islamic financial sector is organized tawarruq. As the substance of this product resembles that of an interest-based loan, there is a debate on its permissibility from a Shari’ah perspective. While discussions on tawarruq have arisen due to the emergence of the practice in Islamic finance, there have be...
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The key difference between Islamic banks and their conventional counterparts is that the former abides by the principles of Islamic law (Shari’ah). However, some Islamic banking products are criticized for not fulfilling the Shari’ah requirements as these closely mimic conventional products. The article discusses how traditional Islamic contracts a...
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Do Islamic financial institutions perform better than their Western counterparts during periods of financial stress? How do Islamic financial institutions manage risk, given their unique characteristics and the need for Shari'ah compliance? Islamic Banking and Financial Crisis looks at the challenges for Islamic financial institutions in an interna...
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Laws have an important role in defining and protecting investors' rights and affecting the structure and growth of the financial sector. Investors provide funds to corporations in form of debt or equity when they get certain rights and powers that protect them from appropriation of funds by insiders and assure returns on their investments. From a c...
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Examines the processes and issues involved in developing Islamic financial products for banks. Islamic banking began in the 1970s with the aim of providing financial services compatible with Islamic law. Driven by market forces it has grown rapidly in Muslim countries and in international financial sectors. It is projected to grow at an annual rate...
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In mimicking conventional finance, Islamic finance is focusing on the legalistic forms and ignoring the substance of Islamic law. Long-term growth of the industry will depend on the dominance of substance over the form. KEY POINTS * The principles of Islamic law governing financial transactions can bring about stability in the financial system. * H...
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We show that expansionary monetary policy causes exchange rate overshooting due to the secondary repercussion comes through the reaction of firms to changed asset prices and the firms' decisions to invest in real capital. This overshooting effect adds to any overshooting that occurs through the traditional Dornbusch (1976) channel, since our model...
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The severity of the current financial crisis has shaken the foundations of the capitalist financial system and has led to the search for ideas and solutions. This paper identifies the failure of risk mitigation at different levels as the main cause of the crisis. While following the principles of Islamic finance would have prevented the occurrence...
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We develop an open economy macroeconomic model with real capital accumulation and microeconomic foundations. We show that expansionary monetary policy causes exchange rate overshooting, not once, but potentially twice; the secondary repercussion comes through the reaction of firms to changed asset prices and the firms' decisions to invest in real c...
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Financing small and medium enterprises is viewed as a new paradigm to alleviate poverty and bring about development. Specialized poverty-focused microfinance institutions have evolved in last 25 years to finance microentrepreneurs. Problems facing these institutions are, among others, non-viability and dependence on subsidized funds for operations....
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The paper studied the role of zakah and macroeconomic policies aimed at growth of income and providing opportunities to the poor in eliminating poverty. Simulation of various macro- regimes and zakah schemes for Bangladesh indicate that while macroeconomic policies play an important role in reducing poverty, poverty cannot be eliminated without usi...
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* While conventional microfinance institutions (MFIs) have expanded their operations in the last two decades, poverty-focused MFIs based on Islamic principles are lagging behind. This paper provides the theoretical basis, operational framework, and empirical support for the establishment of Islamic MFIs. After critically evaluating the conventional...
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This paper uses Leamer's sensitivity test in a VAR framework and examines the robustness of the relationship between different monetary and output variables. Output variables at the aggregated level include GDP, consumption, and gross private investment. Disaggregated variables comprise components of consumption (durables, non-durables and services...
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This article examines the effects of disaggregated government expenditure on investment using fixed- and random-effect methods. Using the government budget constraint, the analysis explores the effects of tax- and debt-financed expenditure for the full sample, and for subsamples of developed and developing countries. In general, tax-financed govern...
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We develop a theoretical model of endogenously determined union density and union membership. A union is formed, continued, or dissolved by majority voting. Given the profitability, production technology, and labor and product market conditions, the union determines the reservation wage that is acceptable to the firm. Based on this reservation wage...
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We examine the effects of technology on productivity growth by disaggregating total output into sectoral components, exploring the roles of investment and technology on productivity growth for countries in different income groups. We find that for low-income countries, investment is the most important determinant of productivity growth. While inves...
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Empirical studies show that when the interest rate is included, money loses its predictive power on output. This paper explains this finding by using a rational expectations model where production decisions of firms require debt financed working capital. The cost of working capital, the interest rate, affects the supply side. Monetary shocks affect...
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We develop a portfolio balance model with real capital accumulation. The introduction of real capital as an asset as well as a good produced and demanded by firms enriches extant portfolio balance models of exchange rate determination. We show that expansionary monetary policy causes exchange rate overshooting, not once, but twice; the secondary re...
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We develop a two-sector economy where each sector is classified as classical/Keynesian (contract/noncontract) in the labor market and traded/nontraded in the product market. We consider the effects of changes in monetary and exchange rate policy on sectoral and aggregate prices and outputs for different sectoral characterizations. Duca (1987) has s...
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Full-text available
We develop a two-sector economy where each sector is classified as classical/Keynesian (contract/noncontract) in the labor market and traded/nontraded in the product market. We consider the effects of changes in monetary and exchange rate policy on sectoral and aggregate prices and outputs for different sectoral characterizations. Duca (1987) shows...
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This paper examines the role played by liquidity constraints in determining non-agricultural employment, labour productivity and output among poor, landless households. The hypothesis that the provision of credit to poor non-agricultural households on reasonable terms can greatly enhance labour use, and output, thereby reducing poverty is empirical...
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Islamic financial institutions provide financial services that abide by the principles and goals of Islamic law (Shari’ah). To ensure the compliance of the operations and products with Islamic law, a Shari’ah governance mechanism must be established. To understand the scope of Shari’ah governance the stakeholders of the Islamic banking industry and...
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Full-text available
A large literature contends that legal systems that adapt efficiently to meet the contracting needs of the economy foster financial sector development. The paper discusses the adaptability features of Islamic law related to commercial transactions (Islamic commercial law) in light of contemporary financial system. After discussing the nature and wa...

Projects

Project (1)
Project
To examine the efficiencies of agent compensation schemes allowed under Islamic rules