IBN Khaldun's Contribution on Modern Economic Development: An Analysis Based on Selected Economic Issues

Irfan Syauqi Beik, Laily Dwi Arsyianti

Abstract


This papers attempted to analyze economic concepts of one of the greatest Islamic scholars, namely Ibn Khaldun. Economic issues of Ibn Khaldun, wich were examined in this papers, included agriculture concept, supply and demand analysis, and price interdependence. This papers found that Ibn Khaldun was able to identify three main sectors that become the foundation og GDP calculation of a country. It was also able to find that demand difference in two different countries is the basis for the existance of international trade. People's desire and government spending were found to be the found to be the variables affecting aggregate demand, while product scarcity and production cost were found to be the variables affecting aggregate supply. This papers also found that Ibn Khaldun has successfully described the interdependence between price of agriculture product and government employees' salary.