A comparative analysis of sharecropping and mudaraba business in Pakistan: a study of PLS in the context of the new theory of the firm (Ph.D. Thesis)

This study examines agricultural share contracts and Islamic profit loss sharing (PLS) in financial sector in Pakistan within the context of the new theory of the firm. The method involves developing an analytical framework for sharecropping in agriculture to analyze PLS practices by mudaraba companies in Pakistan. _x000D_ The thesis consists of three parts. The concept of reward-sharing is first discussed. The main theories of sharecropping are reviewed, including a transaction-monitoring-cost model, which examines its empirical plausibility using primary data. There is an analysis of PLS as practiced by mudaraba companies in Pakistan and the relevance of sharecropping. The main conclusion is that sharecropping prevails in a cooperative environment, is not inherently inefficient (as argued by Marshall), and that low yield is due to poor land quality. _x000D_