Review

Religion and trading network formation: The paradigm of Islam as a substitute to contract law

D. Stamatakis

Athens National and Kapodistrian University, Division of Economic Development, 5, Stadiou Str., Athens 10562, Greece. E-mail: stamatd@econ.uoa.gr.

Tel: +302103689353. Fax: +302103689352.

Accepted 22 July, 2009

Abstract

This article adapts J. Landa’s theoretical proposition of EHMG regarding the effect of social factors on contract breach. It explores its applicability of the Islamic faith on the trading schemes that formatted in the era of the Ottoman Empire. Specifically, it analyzes the specific doctrines of the Islamic faith as expressed through the ‘Sharia’ and the means by which they facilitated trading –in the absence of contract law- over a vast region of inhomogeneous populations. The proceeding analysis implies the existence of an exclusive trading network in the Ottoman Empire that complied by the Islamic code of ethics and, even though a minority, was occupied by Muslims.

Key words: Trading networks, contract law, Islamic faith, Ottoman Empire.