Factors of production and factor returns under political economy of Islam

Abstract EN

This paper critically reviews the traditional classifications and definitions of different factors of production and the way their returns are determined under neoclassical framework.

It also analyses some suggested changes in these definitions made by contemporary Muslim economists.

The issue of land ownership, land-rent and share cropping is discussed in historical and Islamic perspective.

An attempt is made to synthesize competing theories of demand and supply of labor and wage determination.

The issue of physical and monetary capital is discussed both in the traditional and an Islamic context.

Finally, the importance of the role of entrepreneurship, particularly for an Islamic economic system, is emphasized.