Evolution of Islamic economic theory

Abstract

Evolution of Islamic economic theory seems to express stepwise journey of a newly-developed subject as known Islamic economics, from the beginning of its dissemination. Nevertheless, a question of 'where' the starting point is remains unanswered as shown definitions of the subject under two parent broad disciplines, Islamic studies or economics. This paper, instead of having intention to discern this different point of view, attempts to give insights on development of Islamic economic thought from the earlier Islam, when economics as a discipline or subject was still not known, passing through the Schumpeter's 'Great Gap' and reaches the newly-developed discipline of 'Islamic economics'. The paper observes the growth of the literatures being led by banking and financial sector, followed by the invigorating theories and methodology, fiscal policy, trade, and development.