Economics and Finance in Near and Middle East
- The goal of the course is to get students acquainted with specific features of Asian traditional financial institutions and the models of their interactions with “classic” (Western) financial institutions.
- Understands the difference between Western and Islamic economic institutions. Knows the history of traditional institutions. Can explain the reason for emergence of Islamic economic institutions
- Understands the foundations of Islamic economic model. Knows the principles of Sharia regulation of economic activities
- Knows main Islamic debt products. Understand the Takaful model of insurance. Knows the nature of sukuk
- Knows the trends of development of Islamic economy
- Knows the Israel's economic model. Understand basic principles of Judaic economics. Knows the role of economic institutions in the revival of Israel
- Knows the models of coexistence of traditional and Western financial and economic institutions. Knows the social role of traditional institutions. Understands the nature of legal hypocrisy
- Economy and Finance in Near and Middle East: general overview- Economy and finance in Near East: traditions and modernity. - Nature of traditional financial institutions in Near East. Main types of traditional financial institutions in Near East. - Main differences between financial institutions in Near East and Western financial model. - Traditional financial institutions in Near East: are they really traditional? - Ethical character of traditional financial institutions. - Are financial institutions in Asia a reaction against Western financial model? - Why did traditional financial institutions in Near East emerge?
- Principles of the Islamic economical system- Ideological, ethical and legal foundations of the Islamic economical system. - What is forbidden in Islamic economy? Gharar. Ribah. Zakat. Forbidden investments. - Functions of money in the Islamic financial system. - Financial products and Sharia’h principles. - Taxes in Islam. Religious, social, ethical and economical functions of zakat. - Historical evolution of Islamic finance. - Islamic and Christian financial prescriptions: there are more similar features than differences.
- Islamic financial institutions- Islamic bank deposits. Islamic credits. Common features of Islamic and modern Western financial products. - Specific features of Islamic model of insurance (takaful). Functions of Islamic insurance. - Informal Islamic financial institutions. Hawala as an alternative way of money transfer: basic principles. Advantages and disadvantages from the point of view of customers and society. Practical use of Hawala. - Basics of Islamic debt finance. - Islamic bonds (sukuk). Main features of sukuk. - Main types of Islamic debt products. Murabaha. Mudarabah. Musharaka. Decreasing Musharaka. Ijara. Wakala. Kard hasan. Salam. Istisna.
- Development of Islamic economy- Islamic finance in Islamic countries beyond Near East. Main centers of the Islamic finance. - Advantages and disadvantages of the Islamic financial system. - Is financial integration of Islamic countries possible?
- Economic Models in IsraelEconomy of Israel – Western, modern and Judaic elements. - Principles of Judaic economy. - Gemach. Prozbul. Sabbatical. Yovel. - Place of Judaic economy in the modern world. - Modern elements – cooperatives (kibbutzim) and their role in revival of Israel.
- Models of coexistence of Western and traditional financial institutions- Islamic finance in non-Islamic countries. - The place of Islamic finance in the global financial system. - Models of coexistence within one financial company. - Models of coexistence within one country. Formal and informal models of coexistence. Traditionalized Western models: legal hypocrisy. - Are traditional financial institutions more effective from the social point of view? - Prospects of development of traditional financial institutions in modern world
- Interim assessment (2 module)0.25 * Essays + 0.3 * Final presentation + 0.25 * Group presentation + 0.2 * In-class activities
- Kettell, B. (2010). Frequently Asked Questions in Islamic Finance. Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=342655
- Andreas G.F. Hoepner, Hussain G. Rammal, & Michael Rezec. (2011). Islamic mutual funds’ financial performance and international investment style: evidence from 20 countries. The European Journal of Finance, (9–10), 829. https://doi.org/10.1080/1351847X.2010.538521
- Godlewski, C. J., Turk-Ariss, R., & Weill, L. (2013). Sukuk vs. conventional bonds: A stock market perspective. Journal of Comparative Economics, (3), 745. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.jcecon.v41y2013i3p745.761
- Graeber, D. (2012). Debt: The First 5000 Years. Charter, 83(3), 73. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=74699749
- Islamic vs. conventional banking: Business model, efficiency and stability. (2013). https://doi.org/10.1016/j.jbankfin.2012.09.016
- Lewer, J. J., & Van den Berg, H. (2007). Religion and International Trade: Does the Sharing of a Religious Culture Facilitate the Formation of Trade Networks? American Journal of Economics & Sociology, 66(4), 765–794. https://doi.org/10.1111/j.1536-7150.2007.00539.x
- Naz, I., Shah, S. M. A., & Kutan, A. M. (2017). Do managers of sharia-compliant firms have distinctive financial styles? Journal of International Financial Markets, Institutions and Money, (C), 174. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.intfin.v46y2017icp174.187
- Pejman Abedifar, Shahid Ebrahim, Philip Molyneux, & Amine Tarazi. (2015). Islamic Banking and Finance: Recent Empirical Literature and Directions for Future Research. Post-Print. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.hal.journl.hal.01144032