Human Development and Income Inequality in D-8 Countries: A Maqashid Sharia Perspective

Authors

  • Shofiatul Hilwa Faculty of Economics and Business, University of Indonesia
  • Dr. Risna Triandhari, M.S.E. Faculty of Economics and Business, University of Indonesia
  • Raden Parianom Universitas Pembangunan Nasional Veteran Jakarta

DOI:

https://doi.org/10.15408/sjie.v15i1.49355

Keywords:

Islamic economics, maslahah-oriented development, panel ARDL, income distribution

Abstract

Research Originality: This study is original in applying a Maqashid Sharia-based human development index to examine the short- and long-run effects of human development on income inequality in D-8 countries.

Research Objectives: This study aims to analyze whether human development based on the Maqashid Sharia framework can effectively reduce income inequality in D-8 countries in both the short run and the long run.

Research Methods: Using panel data from eight D-8 countries during 2003–2022, income inequality is measured by the Gini index and the Palma ratio, while human development is represented by the Maqashid Sharia Index (MSI). The analysis employs a Panel ARDL model with the Pooled Mean Group estimator to capture short-run and long-run relationships.

Empirical Results: The results show that Maqashid Sharia-based human development significantly reduces income inequality in the long run across D-8 countries, reflecting the maslahah-oriented approach of Islamic economic development. In the short run, it reduces inequality in Indonesia and Turkey but increases inequality in Bangladesh, Egypt, and Nigeria.

Implications: These findings suggest that human development policies should incorporate moral and value-based dimensions. Policymakers in D-8 countries need to promote not only education, health, and income, but also ethical values to ensure more equitable income distribution.

JEL Classification: C33, F22, I32, J61, J62

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Published

2026-04-01

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Human Development and Income Inequality in D-8 Countries: A Maqashid Sharia Perspective. (2026). Signifikan: Jurnal Ilmu Ekonomi, 15(1). https://doi.org/10.15408/sjie.v15i1.49355