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Investment Theory in an Islamic Perspective

In: Contributions to Islamic Economic Theory

Author

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  • Masudul Alam Choudhury

    (University College of Cape Breton)

Abstract

The issue of the existence of a positive rate of interest in models of economic growth and resource allocation is highly debatable in the economic literature. In the capitalistic system interest is the result of the roundaboutness of the capitalistic mode of production. In order to examine the theoretical constructs of the determination of the rate of interest in such a system one can go to the works of Knight,1 Lange,2 Joan Robinson,3 Sraffa4 and Dorfman, Samuelson and Solow.5 In this chapter we shall first make a brief study of these and other modern ideas of interest and then place the pure Islamic theory of interest in sharp contrast to these.

Suggested Citation

  • Masudul Alam Choudhury, 1986. "Investment Theory in an Islamic Perspective," Palgrave Macmillan Books, in: Contributions to Islamic Economic Theory, chapter 9, pages 123-139, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-07728-1_10
    DOI: 10.1007/978-1-349-07728-1_10
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