Investment and Saving

  • Seyed Kazem Sadr
Part of the Political Economy of Islam book series (PEoI)


This chapter is composed of two main parts; the first is a presentation of a model for savings and investment decisions in an interest free economy. This model is constructed with the help of a new observable variable that is determined in the capital market. Subsequently, factors that affect savings and investment functions are discussed. The second part deals with the outcomes of eliminating Riba from the economy. A discussion of the impacts of implementation of this rule on the real and financial sector of the economy concludes the chapter.


Capital Market Good Market Initial Endowment Spot Price Future Consumption 
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  3. Motahhari, Morteza. 1364/1985. Riba, Bank, Bimeh. Qom: Entesharat Sadra.Google Scholar
  4. Sadr, Seyed Muhammad Baqir. 1969. Iqtisaduna 3rd ed., Dar-ul-Fikr. Beirut. Translated into English and published by The World organization for Islamic Services. Tehran, Iran.Google Scholar

Copyright information

© The Editor(s) (if applicable) and The Author(s) 2016

Authors and Affiliations

  • Seyed Kazem Sadr
    • 1
  1. 1.INCEIF—The Global University of IslamiKuala LumpurMalaysia

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