Tag Archives: Income Distribution

Islam and Institution of Interest Based Lending

Danial Pirani In modern times, the institution of interest is regarded as critical for the stability of an economy. Nearly all the economic and financial institutions are, in one way or the other, connected to the interest based transactions. Interest … Continue reading

Rate this:

Posted in Articles on Islamic Economics, Articles on Islamic Finance | Tagged , , , , , , , , | 12 Comments

Labor Productivity and Technical Progress in Islamic Economic Framework

Salman Ahmed Shaikh Most developing countries have lower labor productivity. Some of the reasons why people are not able to increase their productivity include lack of education and hence lack of employable skills, poor health and malnutrition. Islam has made … Continue reading

Rate this:

Posted in Articles on Islamic Economics | Tagged , , , , , | Leave a comment

Critical Analysis of Arguments in Favor of Interest

Salman Ahmed Shaikh In this article, we briefly analyze the logical arguments that are usually presented in the defense of interest as a price of money capital in loans. Interest is the price of risk It is not correct to … Continue reading

Rate this:

Posted in Articles on Islamic Economics | Tagged , , , , , , | 1 Comment

Inheritance Law of Islam and Women

Salman Ahmed Shaikh In the ancient world, women inherited nothing and even when they inherited, they were treated like a minor. Women usually had no independent legal personality. The pre-Islamic Arabs were opposed to inheritance for women, who could not … Continue reading

Rate this:

Posted in Articles on Islamic Economics | Tagged , , , , , | 3 Comments

Some Observations on User Cost of Capital

Salman Ahmed Shaikh Mainstream economics defines physical capital stock as things that are ‘produced means of production’. Examples of physical capital stock include machinery, tools, equipment, buildings, fixtures, infrastructure, installations and production plants, for instance. In a market economy, physical … Continue reading

Rate this:

Posted in Articles on Islamic Economics | Tagged , , , , , , , | 1 Comment

Wage Differentials or Discrimination: Islamic Perspective

Salman Ahmed Shaikh It is a fact that income inequality even in developed countries is high and has been increasing despite sustainable growth experienced in growing East Asian countries and also in Europe and North America in general. One of … Continue reading

Rate this:

Posted in Articles on Islamic Economics | Tagged , , , , , , , , | 5 Comments

Resource Economics: Islamic Perspective

Salman Ahmed Shaikh In economics, the four broad categories of resources include land, labor, capital and entrepreneurial ability. It is the entrepreneurial ability which helps in capital formation with improvement in quality and quantity of capital which in turn also … Continue reading

Rate this:

Posted in Articles on Islamic Economics | Tagged , , , , , | 4 Comments

Distribution of Resources in Islamic Economic Framework

Salman Ahmed Shaikh Scarcity of resources is the basic premise on which the theories of classical and neoclassical economics are based upon. It implies that resources are scarce relatively as compared to the wants that are unlimited. But, this premise … Continue reading

Rate this:

Posted in Articles on Islamic Economics | Tagged , , , , | Leave a comment

Islamic Economics and Consumer Behavior

Salman Ahmed Shaikh Purpose behind human existence is one the basic questions in philosophy. Centuries ago, pioneer philosophers used to study and discuss ‘why we exist’, but after renaissance in Europe and revolt against Church, social philosophers came to the … Continue reading

Rate this:

Posted in Articles on Islamic Economics | Tagged , , , , , , , , , | 5 Comments

Distributional Inequity and Welfare Loss in Interest Based Financial System

Salman Ahmed Shaikh Capitalism, the way it is practiced as an economic system, has largely allowed and provided legal cover to certain exploitative institutions and their operations based on free market philosophy. Such institutions have been chiefly responsible for much … Continue reading

Rate this:

Posted in Articles on Islamic Economics | Tagged , , , , , , , | 8 Comments