Empirical studies on the effects of zakat collection and disbursement and the abolition of interest are now possible to the extent that these steps are being taken in some countries. Hypotheses relating to the impact of zakat and the replacement of interest by profit-sharing, which have been presented in the literature so far, need to be put to test. Even hypotheses relating to the behavior of the producer under the influence of Islamic teachings may be tested in selected regions.
The possibility of empirical studies underlines the need for more specific and narrowly focused hypotheses. Those we find in the literature relating to consumption, work, and so on, are couched in general terms.
Source: Dr. Muhammad Nejatullah Siddiqi, Economics An Islamic Approach. Republished with permission.
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