The impact of Islamic finance on economic development in Malaysia : cointegration and vecm models

الملخص EN

With the growing number of islamic finance worldwide, many researchers have been interested in their advantages and ability to improve the financial sector, therefore, the purpose of the current paper is to study the impact of islamic banks and finance on economic development in Malaysia as one of the leading countries in the field of islamic banking, so that the Cointegration and vector error correction model (VECM) was used for the period 1995-2020.

The results of the study concluded that there is a long-term equilibrium relationship between islamic finance and economic development in Malaysia.