Ibn Khaldun and Adam Smith: comparative studies on economic thought, tax imposition and national wealth relationship / Mohd Syafiq Mohd Rashid

Ibn-Khaldun is an old forgotten “fathers of economy”, his thought in economy is aligned with the sharia’ compliance and were given respect by worldwide due to his new founding and depth understanding in world economies. However, on the other hand, Adam Smith, the infamous Scottish pioneer in political economic which also called as the “fathers of economy” by the western scholars, bringing almost identical concept as Ibn-Khaldun in economic thought. This paper will study the legibility of Ibn Khaldun, where, he claimed that the tax rate of nation affect their tax revenue and as well as their national wealth. By collecting all data on gross assets, liabilities and gross domestic product and others variables from 6 countries worldwide with 10 years of time frame, we have discovered that the Ibn khaldun theory proven to be correct that shows the result of tax imposition to be the most influence variable to the national wealth.