Nexus between economic growth, investment, and Islamic banking development : the case of dual banking system
Joint Authors
Source
Journal of Islamic Business and Management
Issue
Vol. 10, Issue 2 (31 Dec. 2020), pp.368-389, 22 p.
Publisher
Riphah International University Riphah Centre of Islamic Business
Publication Date
2020-12-31
Country of Publication
Pakistan
No. of Pages
22
Main Subjects
Abstract EN
This research aims to study the impact that banking development attributed to Islamic banks is instigating on the economic growth and domestic investment in a dataset consisting of 20 countries having Islamic and conventional banks operating side by side over the period 1995 to 2014, using the "two-step system GMM" technique.
Furthermore, it also inspects the difference in the impact that Islamic banking development is asserting on economic activity as compared to the impact attributed to conventional banking development using four measures of banking sector development namely, depth of financial intermediation, size of financial intermediation, credit to the private sector, and the ratio of assets of banks to the total banking assets.
Our findings suggest that Islamic banks promote economic growth and domestic investment by increasing the depth and size of their intermediation, and by extending more credit to the private sector.
Conventional banking development also stimulates economic growth and domestic investment by increasing its assets as a percentage of total banking assets.
Islamic banking has a more meaningful impact on economic activity as its transactions are based on physical assets and linked to the real economy.
Shariah promotes social justice and equity and prohibits them from undertaking harmful products and activities.
American Psychological Association (APA)
Nosheen& Abd al-Rashid. 2020. Nexus between economic growth, investment, and Islamic banking development : the case of dual banking system. Journal of Islamic Business and Management،Vol. 10, no. 2, pp.368-389.
https://search.emarefa.net/detail/BIM-1429388
Modern Language Association (MLA)
Nosheen& Abd al-Rashid. Nexus between economic growth, investment, and Islamic banking development : the case of dual banking system. Journal of Islamic Business and Management Vol. 10, no. 2 (2020), pp.368-389.
https://search.emarefa.net/detail/BIM-1429388
American Medical Association (AMA)
Nosheen& Abd al-Rashid. Nexus between economic growth, investment, and Islamic banking development : the case of dual banking system. Journal of Islamic Business and Management. 2020. Vol. 10, no. 2, pp.368-389.
https://search.emarefa.net/detail/BIM-1429388
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 383-389
Record ID
BIM-1429388