Dynamic model of Ibn Khaldun theory on poverty : Empirical analysis on the poverty in majority and minority Muslim population after the financial crisis

Purpose – The purpose of this paper is to examine the poverty rates of Indonesia, Malaysia and Pakistan, representing majority Muslim populations, and of India as a minority Muslim population, according to Ibn Khaldun's dynamic model on poverty. Design/methodology/approach – According to Ibn Khaldun, poverty is not merely influenced by economic dimension. He initiated fundamental factors as mentioned in his formula P = f ( W , G , N , S , g , J  ) where P is a function of Wealth of the Nation ( W  ), Government ( G  ), Human Resource ( N  ), Sharia ( S  ), Growth (  g ) and Justice (  J  ). This study generates secondary data covering from 2000‐2010 or after financial crisis of 1997. These data employed using Panel method. Findings – The study's findings reveal that the variable of Dynamic model of Ibn Khaldun influenced significantly the level of poverty in Indonesia as a Muslim majority population, whereas in Pakistan only the HDI variable has significant influence. Meanwhile (like Malaysia) in India, the variable of Dynamic model of Ibn Khaldun does not influence significantly. Research limitations/implications – Each country has certain characteristics and background with respect to economic growth, government policy and population that might influence poverty. As a result, the application of Ibn Khaldun model varies accordingly. Practical implications – The findings reveal that quite a few challenges lie ahead in applying Ibn Khaldun model in these countries. This needs to be taken on promptly by each country, especially Muslim countries. Originality/value – This paper is one of few studies which employ Ibn Khaldun theory on poverty, using panel data to investigate the appropriateness of the model.