The role of institutions in driving economic change: comparing the thoughts of Ibn Khaldūn and Douglass C. North

This article compares various elements of Ibn Khaldūn’s and Douglass C. North’s thoughts on the role of institutions in influencing or forcing economic change. There are a number of interesting similarities in ideas, thoughts, approaches, and methodologies, which prove that New Institutional Economi...

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Main Author:	Khalid, Haniza
Format:	Article
Language:	English
Published:	IIUM Press 2015
Subjects:	HB3711 Business cycles. Economic fluctuations HJ7451 Expenditures. Government spending
Online Access:	http://irep.iium.edu.my/46944/ http://irep.iium.edu.my/46944/ http://irep.iium.edu.my/46944/1/Hk.pdf

id	iium-46944
recordtype	eprints
spelling	iium-469442016-05-13T06:18:57Z http://irep.iium.edu.my/46944/ The role of institutions in driving economic change: comparing the thoughts of Ibn Khaldūn and Douglass C. North Khalid, Haniza HB3711 Business cycles. Economic fluctuations HJ7451 Expenditures. Government spending This article compares various elements of Ibn Khaldūn’s and Douglass C. North’s thoughts on the role of institutions in influencing or forcing economic change. There are a number of interesting similarities in ideas, thoughts, approaches, and methodologies, which prove that New Institutional Economics may actually mirror much of (and can benefit from) Ibn Khaldūn’s fourteenth century ideas than was previously thought. Both Ibn Khaldūn’s continuum of badāwah to ḥaḍārah and North’s theory on changes from informal to formal institutions lead to the same fundamental conclusions: (i) change is incremental as it is a result in small cumulative changes in the cost-benefit outcomes of the market agents over time, and therefore (ii) economic performance inevitably depends on the existence and effectiveness of formal institutions that alter those outcomes. It is also noted that ‘aṣabiyyah or group feeling, another cornerstone of Ibn Khaldūn’s thought, corresponds perfectly to North’s treatise that social cohesion and institutional efficiency are more important than the amount of resource endowment in bringing about economic development and change. In addition, Ibn Khaldūn’s views on the government’s commercial activities are reviewed in the study in light of North’s transaction costs and property rights framework. IIUM Press 2015-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/46944/1/Hk.pdf Khalid, Haniza (2015) The role of institutions in driving economic change: comparing the thoughts of Ibn Khaldūn and Douglass C. North. Intellectual Discourse, 23 (2). pp. 177-199. ISSN 0128-4878 http://journals.iium.edu.my/intdiscourse/index.php/islam
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB3711 Business cycles. Economic fluctuations HJ7451 Expenditures. Government spending
spellingShingle	HB3711 Business cycles. Economic fluctuations HJ7451 Expenditures. Government spending Khalid, Haniza The role of institutions in driving economic change: comparing the thoughts of Ibn Khaldūn and Douglass C. North
description	This article compares various elements of Ibn Khaldūn’s and Douglass C. North’s thoughts on the role of institutions in influencing or forcing economic change. There are a number of interesting similarities in ideas, thoughts, approaches, and methodologies, which prove that New Institutional Economics may actually mirror much of (and can benefit from) Ibn Khaldūn’s fourteenth century ideas than was previously thought. Both Ibn Khaldūn’s continuum of badāwah to ḥaḍārah and North’s theory on changes from informal to formal institutions lead to the same fundamental conclusions: (i) change is incremental as it is a result in small cumulative changes in the cost-benefit outcomes of the market agents over time, and therefore (ii) economic performance inevitably depends on the existence and effectiveness of formal institutions that alter those outcomes. It is also noted that ‘aṣabiyyah or group feeling, another cornerstone of Ibn Khaldūn’s thought, corresponds perfectly to North’s treatise that social cohesion and institutional efficiency are more important than the amount of resource endowment in bringing about economic development and change. In addition, Ibn Khaldūn’s views on the government’s commercial activities are reviewed in the study in light of North’s transaction costs and property rights framework.
format	Article
author	Khalid, Haniza
author_facet	Khalid, Haniza
author_sort	Khalid, Haniza
title	The role of institutions in driving economic change: comparing the thoughts of Ibn Khaldūn and Douglass C. North
title_short	The role of institutions in driving economic change: comparing the thoughts of Ibn Khaldūn and Douglass C. North
title_full	The role of institutions in driving economic change: comparing the thoughts of Ibn Khaldūn and Douglass C. North
title_fullStr	The role of institutions in driving economic change: comparing the thoughts of Ibn Khaldūn and Douglass C. North
title_full_unstemmed	The role of institutions in driving economic change: comparing the thoughts of Ibn Khaldūn and Douglass C. North
title_sort	role of institutions in driving economic change: comparing the thoughts of ibn khaldūn and douglass c. north
publisher	IIUM Press
publishDate	2015
url	http://irep.iium.edu.my/46944/ http://irep.iium.edu.my/46944/ http://irep.iium.edu.my/46944/1/Hk.pdf
first_indexed	2023-09-18T21:06:48Z
last_indexed	2023-09-18T21:06:48Z
_version_	1777410987571281920

The role of institutions in driving economic change: comparing the thoughts of Ibn Khaldūn and Douglass C. North

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