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PUBLIC DEBT AS A SOURCE OF FINANCING FOR GOVERNMENT EXPENDITURES IN THE PERSPECTIVE OF ISLAMIC SCHOLARS
Corresponding Author(s) : Imron Mawardi
Humanities & Social Sciences Reviews,
Vol. 7 No. 4 (2019): July
Abstract
Purpose of the study: This study aims to examine foreign debt as a source of financing for economic development. This research is expected to provide (1) an overview of debt as a source of funding for state projects, (2) investigate its impacts and (3) offer additional knowledge of its Islamic perspective.
Methodology: This research is a qualitative study using the study literature approach. This research is conducted by analysing books, literature, journals, and magazines with themes related to the focus of the discussion on this study. It is expected that the method used can provide insight, general knowledge, and develop the view of Islam in relation to foreign debt.
Main Findings: The government has to ensure that the state has the ability to pay off its obligations in the future; guarantee that loans have to be free from interest; prioritize taking loans from internal sources rather than external sources. In Addition, debts are not intended for deferred needs and not taking loans that exceed their needs.
Applications of this study: basically the results of this study can be applied to any country that considers the use of public debt, like other Islamic systems.
Novelty/Originality of this study: This research is conceptual research in an Islamic perspective. This study successfully examined comprehensively related to the public debt with the Islamic approach.
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- Ab Rahman, A. (2009). Peranan Wakaf Dalam Pembangunan. Shariah Journal, 17(1), 113–152.
- Adegbite, E. O., Ayadi, F. S., & Ayadi, O. F. (2008). The impact of Nigeria ’ s external debt on economic development. International Journal of Emerging Markets, 3(3), 285–301. https://doi.org/10.1108/17468800810883693 DOI: https://doi.org/10.1108/17468800810883693
- Al-Maliki, A. (2001). Politik Ekonomi Islam (1st ed.). Bangil: Al-Izzah.
- Baltas, N. C. (2013). The Greek financial crisis and the outlook of the Greek economy. Journal of Economic Asymmetries, 10(1), 32–37. https://doi.org/10.1016/j.jeca.2013.09.002 DOI: https://doi.org/10.1016/j.jeca.2013.09.002
- Bengoa, M., & Sanchez-Robles, B. (2003). Foreign direct investment, economic freedom and growth: New evidence from Latin America. European Journal of Political Economy, 19(3), 529–545. https://doi.org/10.1016/S0176-2680(03)00011-9 DOI: https://doi.org/10.1016/S0176-2680(03)00011-9
- Busse, M., & Hefeker, C. (2007). Political risk, institutions and foreign direct investment. European Journal of Political Economy, 23(2), 397–415. https://doi.org/10.1016/j.ejpoleco.2006.02.003 DOI: https://doi.org/10.1016/j.ejpoleco.2006.02.003
- Changyong, X., Jun, S., & Chen, Y. (2012). Foreign debt , economic growth and economic crisis. Journal of Chinese Economic and Foreign Trade Studies, 5(2), 157–167. https://doi.org/10.1108/17544401211233534 DOI: https://doi.org/10.1108/17544401211233534
- Chapra, M. U. (2000). Islam dan Tantangan Ekonomi. Jakarta: Gema Insani Press & Tazkia Publisher.
- Chaudhry, M. S. (2016). Sistem Ekonomi Islam: Prinsip Dasar. Jakarta: Prenadamedia Group.
- Eberhardt, M., & Presbitero, A. F. (2015). Public debt and growth : Heterogeneity and non-linearity ☆. Journal of International Economics, 97(1), 45–58. https://doi.org/10.1016/j.jinteco.2015.04.005 DOI: https://doi.org/10.1016/j.jinteco.2015.04.005
- Ismail, N. A. (2013). Hutang dan Pembangunan Ekonomi Negara Islam. Kuala Lumpur: Dewan Bahasa dan Pustaka.
- Karim, A. A. (2012). Sejarah Pemikiran Ekonomi Islam (5th ed.). Jakarta: Raja Grafindo Persada.
- Mannan, A. (1997). Teori dan Praktek Ekonomi Islam. Yogyakarta: Dhana Bakti Wakaf.
- Muhajirin. (2016). Konsep Hutang Negara Dalam Perspektif Hukum Ekonomi Islam. Al Mashlahah Hukum Dan Pranata Sosial Islam, 347–358.
- Panizza, U., & Presbitero, A. F. (2014). Public debt and economic growth : Is there a causal effect ? JOURNAL OF MACROECONOMICS, 41, 21–41. https://doi.org/10.1016/j.jmacro.2014.03.009 DOI: https://doi.org/10.1016/j.jmacro.2014.03.009
- Sakti, A. (2007). Ekonomi Islam : Jawaban Atas Kekacauan Ekonomi Modern. Paradigma & Aqsa Publishing.
- Toarna, A., & Cojanu, V. (2015). The 2008 Crisis : Causes and Future Direction for the Academic Research. Procedia Economics and Finance, 27(15), 385–393. https://doi.org/10.1016/S2212-5671(15)01010-2 DOI: https://doi.org/10.1016/S2212-5671(15)01010-2
- Widiastuti, T., Mawardi, I., Robani, A., & Rusydiana, A. S. (2018). Optimization of Zakat Fund Management in Regional Zakat Institution. Humanities & Social Science Reviews, 6(2), 113–140. DOI: https://doi.org/10.18510/hssr.2018.6217
References
Ab Rahman, A. (2009). Peranan Wakaf Dalam Pembangunan. Shariah Journal, 17(1), 113–152.
Adegbite, E. O., Ayadi, F. S., & Ayadi, O. F. (2008). The impact of Nigeria ’ s external debt on economic development. International Journal of Emerging Markets, 3(3), 285–301. https://doi.org/10.1108/17468800810883693 DOI: https://doi.org/10.1108/17468800810883693
Al-Maliki, A. (2001). Politik Ekonomi Islam (1st ed.). Bangil: Al-Izzah.
Baltas, N. C. (2013). The Greek financial crisis and the outlook of the Greek economy. Journal of Economic Asymmetries, 10(1), 32–37. https://doi.org/10.1016/j.jeca.2013.09.002 DOI: https://doi.org/10.1016/j.jeca.2013.09.002
Bengoa, M., & Sanchez-Robles, B. (2003). Foreign direct investment, economic freedom and growth: New evidence from Latin America. European Journal of Political Economy, 19(3), 529–545. https://doi.org/10.1016/S0176-2680(03)00011-9 DOI: https://doi.org/10.1016/S0176-2680(03)00011-9
Busse, M., & Hefeker, C. (2007). Political risk, institutions and foreign direct investment. European Journal of Political Economy, 23(2), 397–415. https://doi.org/10.1016/j.ejpoleco.2006.02.003 DOI: https://doi.org/10.1016/j.ejpoleco.2006.02.003
Changyong, X., Jun, S., & Chen, Y. (2012). Foreign debt , economic growth and economic crisis. Journal of Chinese Economic and Foreign Trade Studies, 5(2), 157–167. https://doi.org/10.1108/17544401211233534 DOI: https://doi.org/10.1108/17544401211233534
Chapra, M. U. (2000). Islam dan Tantangan Ekonomi. Jakarta: Gema Insani Press & Tazkia Publisher.
Chaudhry, M. S. (2016). Sistem Ekonomi Islam: Prinsip Dasar. Jakarta: Prenadamedia Group.
Eberhardt, M., & Presbitero, A. F. (2015). Public debt and growth : Heterogeneity and non-linearity ☆. Journal of International Economics, 97(1), 45–58. https://doi.org/10.1016/j.jinteco.2015.04.005 DOI: https://doi.org/10.1016/j.jinteco.2015.04.005
Ismail, N. A. (2013). Hutang dan Pembangunan Ekonomi Negara Islam. Kuala Lumpur: Dewan Bahasa dan Pustaka.
Karim, A. A. (2012). Sejarah Pemikiran Ekonomi Islam (5th ed.). Jakarta: Raja Grafindo Persada.
Mannan, A. (1997). Teori dan Praktek Ekonomi Islam. Yogyakarta: Dhana Bakti Wakaf.
Muhajirin. (2016). Konsep Hutang Negara Dalam Perspektif Hukum Ekonomi Islam. Al Mashlahah Hukum Dan Pranata Sosial Islam, 347–358.
Panizza, U., & Presbitero, A. F. (2014). Public debt and economic growth : Is there a causal effect ? JOURNAL OF MACROECONOMICS, 41, 21–41. https://doi.org/10.1016/j.jmacro.2014.03.009 DOI: https://doi.org/10.1016/j.jmacro.2014.03.009
Sakti, A. (2007). Ekonomi Islam : Jawaban Atas Kekacauan Ekonomi Modern. Paradigma & Aqsa Publishing.
Toarna, A., & Cojanu, V. (2015). The 2008 Crisis : Causes and Future Direction for the Academic Research. Procedia Economics and Finance, 27(15), 385–393. https://doi.org/10.1016/S2212-5671(15)01010-2 DOI: https://doi.org/10.1016/S2212-5671(15)01010-2
Widiastuti, T., Mawardi, I., Robani, A., & Rusydiana, A. S. (2018). Optimization of Zakat Fund Management in Regional Zakat Institution. Humanities & Social Science Reviews, 6(2), 113–140. DOI: https://doi.org/10.18510/hssr.2018.6217