Investigation of the external effects of economic activities in Islamic economy
All economic activities have main and secondary effects. The main effects determine the economic position of the economic activity and constitute the purpose and motivation of the economic firms. But the secondary effects in the economic literature are known as external effects, and they are divided...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Center for Religious Sciences Kom, Belgrade
2023-01-01
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| Series: | Kom: Časopis za Religijske Nauke |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/2334-6396/2023/2334-63962303057R.pdf |
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| Summary: | All economic activities have main and secondary effects. The main effects determine the economic position of the economic activity and constitute the purpose and motivation of the economic firms. But the secondary effects in the economic literature are known as external effects, and they are divided into two types of negative and positive effects. Capitalist and Islamic economic systems have reacted and faced external effects based on their own principles and foundations. In the capitalist economy receiving taxes and monetary penalty, from the firms that carry out such economic activities, is used as a mechanism. In Islamic economy, according to the principles of Islamic economics, only negative external effects should be compensated because it is the right of people. In contrast, the positive externalities that people receive without paying money to companies are a type of benevolence and charity. There is no need to compensate by beneficiaries. While, according to the principles of capitalist economy, even the positive external effects must be compensated because if they are not compensated, they will reduce the economic efficiency. The research method in this research is the library and descriptive-analytical method, which has been discussed using various Islamic and economic sources. |
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| ISSN: | 2334-6396 2334-8046 |