Implications of Islamic View on the Regional Equality of Opportunities and Income: General Equilibrium Modeling for Iran

اقتصاد و توسعه منطقه ای

Article 4, Volume 20, Issue 5, May 2013   

Document Type: مقالات پژوهشی

DOI: 10.22067/erd.v1392i5.30537

Author

Morteza Mortazavi Kakhki^*

Abstract

Implications of Islamic View on the Regional Equality of Opportunities and Income: General Equilibrium Modeling for Iran

Morteza Mortazavi Kakhki
Ph.D Student, Department of Economics, Ferdowsi University of Mashhad
Iman Haqiqi
MA Student, Department of Economics, Economics University
Mohammad Hossien Mahdavi Adeli
Full Professor, Department of Economics, Ferdowsi University of Mashhad

Abstract
The Ultimate goal of Islam is establishment of social harmony in the society. In this paper we are going to study the Islamic perspective on causes of income inequality. We review the scholars’ opinions and Islamic principles. We show that Islam also recognize sine quality in opportunities as a root of inequality of income. Taking this into account, we will evaluate the impacts of redistribution of opportunities on the inequality of income in Iran provinces. The results of the General Equilibrium model show that equal opportunities through equalizing educational opportunities in various provinces can improve income distribution and reduce inter-provincial Gini coefficient of income. According to our findings if the equality of opportunities is met, the income distribution will improve and inter-provincial Gini coefficient will reduce from 0.25 to 0.11.

Keywords:Justice, Islam, Equality of income, Equality of opportunities, General equilibrium

JEL: B59, D58, D63, I24

Keywords

Justice; Islam; Equality of income; Equality of opportunities; General Equilibrium