DefinePK

Abstract

This study provides insights into real wellbeing of the Ummah (Muslim community) using Islamic perspectives and empirical evidence. Islam places justice at center in economic interactions. In Islamic teachings, justice is a prerequisite for human wellbeing and economic development. Ibn Khaldun has devoted a whole section on justice entitled: injustice triggers the destruction of civilization. Nevertheless, justice cannot be fully realized without asabiyah, which is also referred to as social solidarity, group feeling or social cohesion. This study focuses on social solidarity to determine its causal links with the economic performance of the Ummah. The study employs a comprehensive measure of social solidarity of a society that is based on three indices namely social cohesion, interpersonal safety, trust and civic activism. The results show that social solidarity plays a positive and significant role in determining the economic performance of the Ummah. This finding is shown to be robust to different control variables, different specifications, econometric techniques and the outliers.

Key words: Social Cohesion, Justice, Muslim Community, Economic Growth, Religion.