Differences of the Methodology of Normative and Positive Islamic Economics from Shahid Sadr's Viewpoint

Muslim scholars typically distinguish between normative and positive economics. Such a distinction has been a source for discussions on the meaning of these two concepts and the method of producing and testing them. The current paper deals with the question that whether the difference in the content of normative and positive economics could differentiate their methodology? According to the hypothesis of the paper, each of normative and positive Islamic economics has their own method for building theories. Such a conjecture is mainly based on the definition of Shahid Sadr of Normative and positive Islamic economics and their relationship. The findings of the paper, which is based on an analytical approach, show that theories of normative Islamic economics are discovered by using direct Ijtihad from Islamic sources or by using "the discovery methodology". In contrast, the theories of positive Islamic economics are produces by the aid of deduction, induction and hypothetico-deduction. There is, of course, a methodological convergence between positive and normative economics. Since the findings of normative Islamic economics especially those about the ideal structure of Islamic economy are used as some assumption in positive Islamic economics, the methodology of positive Islamic economics is not totally distinct from the methodology of normative Islamic economics.