Formation of Islamic & Capitalistic Types of Economic Regimes

Man's behavior has always been influenced by his moral beliefs. Generally speaking, a person's mind set or mentality is affected and also affects his surroundings. Assuming that we can separate the three phenomenon of religion, moral values and environment, we can presume a triangle based on which a person's complete behavior and attitudes are attributed to. The impact of religion and moral values on man's behavior is so profound that it can produce a whole new economic attitude in a society. A materialistic mind set tends to create a capitalistic economic system while an Islamic mentality seeks to create an economic system based on Islamic values. In other words, the way we view government, price system,distribution of production factors, monetary and fiscal tools and others, are all affected by the basic premises of an economic system. Therefore, considering such impacts, it is important to study the various effects of Islamic values and capitalism in forming economic regimes, social institutions and various economic and business tools.In this paper, we review the difference between the values based on religious beliefs and those based on a capitalistic system, and explain the formation of different economic regimes based on their values. Based on our research, a solely-profitseeking mentality directs people to a capitalistic economic system while a mentality based on religious virtues directs them to an economic regime based on moral values.