IDEAS home Printed from https://ideas.repec.org/a/pid/journl/v39y2000i4p663-672.html
   My bibliography  Save this article

Attitude towards Interest-free Financing among Small Traders and Farmers in Multan

Author

Listed:
  • Mohammad Aslam

    (Bahawalpur Division, Bahawalpur.)

  • Toseef Azid

    (Department of Economics, Bahauddin Zakariya University, Multan.)

  • Shahnawaz Malik

    (Department of Economics, Bahauddin Zakariya University, Multan.)

Abstract

It is frequently asked whether the modern economy can function without interest. This question has acquired some urgency in wake of the recent ruling of Supreme Court banning interest in Pakistan. In this respect every expert has his own opinion. Some pronounced that great harm will result from the banning of interest. Others have the opinion that such pronouncement is based on lack of understanding of the modern economic system, as well as the nature of the Islamic prohibition of interest. However, the banning of the rate of interest has affect on the economic activity, i. e. especially on the small traders and farmers. It is commonly argued that this change in capital market has two important effects on the economy. It increased the capital supply while price reduces, thus improving efficiency. And it makes also possible to produce more with relatively less cost, thus has positive effect on the growth of the economy.

Suggested Citation

  • Mohammad Aslam & Toseef Azid & Shahnawaz Malik, 2000. "Attitude towards Interest-free Financing among Small Traders and Farmers in Multan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 663-672.
    • Handle: RePEc:pid:journl:v:39:y:2000:i:4:p:663-672
    as

    Download full text from publisher

    File URL: http://www.pide.org.pk/pdf/PDR/2000/Volume4/663-672.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frank H. Knight, 1936. "The Quantity of Capital and the Rate of Interest: II," Journal of Political Economy, University of Chicago Press, vol. 44(5), pages 612-612.
    2. Frank H. Knight, 1936. "The Quantity of Capital and the Rate of Interest: I," Journal of Political Economy, University of Chicago Press, vol. 44(4), pages 433-433.
    3. Mr. Abbas Mirakhor & Mr. Mohsin S. Khan, 1991. "Islamic Banking," IMF Working Papers 1991/088, International Monetary Fund.
    4. Bashir, B. A., 1983. "Portfolio management of islamic banks : `Certainty model'," Journal of Banking & Finance, Elsevier, vol. 7(3), pages 339-354, September.
    5. Joan Robinson, 1953. "The Production Function and the Theory of Capital," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 21(2), pages 81-106.
    6. Bandar al-Hajjar & John R. Presley, 1996. "Small Business in Saudi Arabia," Palgrave Macmillan Books, in: J. W. Wright (ed.), Business and Economic Development in Saudi Arabia, chapter 7, pages 105-126, Palgrave Macmillan.
    7. Zaman, Arshad & Zaman, Asad, 2001. "Interest And The Modern Economy," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 8, pages 61-74.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. J. Barkley Rosser, 2020. "Austrian themes and the Cambridge capital theory controversies," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 33(4), pages 415-431, December.
    2. Gerald R. Steele, 2014. "Hayek’s Pure Theory of Capital," Chapters, in: Roger W. Garrison & Norman Barry (ed.), Elgar Companion to Hayekian Economics, chapter 4, pages 71-93, Edward Elgar Publishing.
    3. Ross B. Emmett, 2020. "James M. Buchanan and Frank H. Knight on democracy as “government by discussion”," Public Choice, Springer, vol. 183(3), pages 303-314, June.
    4. Eduard Braun, 2015. "Carl Menger’s Contribution to Capital Theory," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 23(1), pages 77-100.
    5. Bagus, Philipp & Howden, David, 2010. "The Term Structure of Savings, the Yield Curve, and Maturity Mismatching," MPRA Paper 79592, University Library of Munich, Germany.
    6. Malte Faber & Ralph Winkler, 2006. "Heterogeneity and Time," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(3), pages 803-825, July.
    7. Henrik Egbert & Teodor Sedlarski & Aleksandar B. Todorov, 2021. "Foundations of contemporary economics: Frank H. Knight on uncertainty, capital theory, and the beginnings of the Chicago school," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 74-90.
    8. Mirakhor, Abbas, 1987. "Analysis of Short-Term Asset Concentration in Islamic Banking," MPRA Paper 56029, University Library of Munich, Germany.
    9. Amir Kia & Ali F. Darrat, 2003. "Modeling Money Demand under the Profit-Sharing Banking Scheme: Evidence on Policy Invariance and Long-Run Stability," Carleton Economic Papers 03-13, Carleton University, Department of Economics, revised Apr 2007.
    10. Santos, João & Domingos, Tiago & Sousa, Tânia & St. Aubyn, Miguel, 2016. "Does a small cost share reflect a negligible role for energy in economic production? Testing for aggregate production functions including capital, labor, and useful exergy through a cointegration-base," MPRA Paper 70850, University Library of Munich, Germany.
    11. Garbellini, Nadia, 2020. "Measurement without theory, and theory without measurement: What's wrong with Piketty's capital in the XXI century?," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 50-62.
    12. Fix, Blair, 2020. "How the Rich Are Different: Hierarchical Power as the Basis of Income Size and Class," SocArXiv t8muy_v1, Center for Open Science.
    13. Beck, Thorsten & Demirgüç-Kunt, Asli & Merrouche, Ouarda, 2013. "Islamic vs. conventional banking: Business model, efficiency and stability," Journal of Banking & Finance, Elsevier, vol. 37(2), pages 433-447.
    14. Sandrine Kablan & Ouidad Yousfi, 2015. "Performance of Islamic Banks across the World: An Empirical Analysis over the Period 2001-2008," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 4(1), pages 27-46.
    15. Mazouch, P. & Krejčí, I., 2016. "The Analysis of the Age Structure of Regional Fixed Capital in the Agriculture," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(2), pages 1-13, June.
    16. Blair Fix, 2019. "The Aggregation Problem: Implications for Ecological and Biophysical Economics," Biophysical Economics and Resource Quality, Springer, vol. 4(1), pages 1-15, March.
    17. Adam B. Elhiraika, 1998. "Macroeconomic Instability, Financial Repression and Islamic Banking in Sudan," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 6(2), pages 61-86, December.
    18. Jaime Páez Méndez, 2013. "Las contribuciones de Joan Robinson a la teoría económica y su vigencia," Documentos de Investigación - Economía 14058, Universidad Central.
    19. Jürgen Bitzer & Erkan Gören, 2016. "Measuring capital services by energy use: an empirical comparative study," Applied Economics, Taylor & Francis Journals, vol. 48(53), pages 5152-5167, November.
    20. Mauro Boianovsky, 1998. "Wicksell, Ramsey and the theory of interest," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 5(1), pages 140-168.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:39:y:2000:i:4:p:663-672. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.