A Review of the Relationship between Property Rights and Poverty Based on VAR Model with Special Emphasis on Islamic Economy Literature during 1369-1393

The Quranic verses and traditions of the Imams hold poverty in contempt and place emphasis on the need to preserve individuals’ property rights. The present paper uses an analytical and econometric method to study the relationship between poverty and property rights according to Islamic economy. While analyzing this issue in the light of the literature of Islamic economy, this study investigates the two fold relationship between the index of property rights and the index of absolute poverty proposed by Amartya Sen in the economy of Iran during 1369-1393. Time series and vector auto regression modeling were used in this study. According to the hypothesis of the paper, there is a direct two fold relationship between absolute poverty and violation of property rights. The findings of the study indicate that in the view of Islam, there is a twofold relationship between poverty and property rights. According to Quranic verses and traditions, poverty and its severity leads to the violation of individuals’ rights, and the violation of individuals’ property rights causes poverty to be severer. The findings of the paper's experimental study indicate that there is a direct and two fold relationship between absolute poverty and violation of property rights in Iran’s economy during 1369-1393.