University of Khartoum

Operational Constraints of Islamic Equity Fund for Budged Deficit Financing

Operational Constraints of Islamic Equity Fund for Budged Deficit Financing

Show full item record

Title: Operational Constraints of Islamic Equity Fund for Budged Deficit Financing
Author: Onour, Ibrahim A.
Abstract: This paper investigate conditions under which Islamic equity fund can be sustainable source of budget deficit financing in an interest free economy. Our findings show that Islamic equity fund can be sustainable source of deficit financing when the rate of return on Islamic equity fund exceeds the budget deficit expansion rate . This is because when the budget deficit expansion rate exceeds the rate of return on Islamic equity fund, the return per unit of Islamic equity fund declines over time as more investment units need to be issued to meet the expanding budget deficit. Our results also show that to maintain stable demand for Islamic equity fund units, it is essential to maintain the size of the fund at a fixed level, and ensure that the rate of return on those units be greater than the rate of cost of capital financing.
URI: http://khartoumspace.uofk.edu/123456789/27606
Date: 2014


Files in this item

Files Size Format View

This item appears in the following Collection(s)

Show full item record

Share

Search DSpace


Browse

My Account