Production and Investment Functions Between Interest Rate and Profit; The Choice of Appropriate Financing Model; Cases of Algeria & Malaysia (2000-2014)

Abstract

The paper attempts to highlight the main investment determinants based on different variables such us income, cost of production and return in the capitalist and the Islamic alternative model, this parer also analysis the income,i.e the income affecting investment implicitly through the exploitation of the production function elements (labor and capital) in order to find out the areas of operating capital and the expected productivity, so as to lead the investors to the balancing point between costs and expected returns,the study attempts to link economic theory to reality in the cases of Algeria and Malaysia and utmost connecting financing with the real side of economy, production as a basic principle of Islamic finance which is based on participation.