1,721,037 research outputs found
Supplemental Material - The Nexus between tourism-energy-environmental degradation: Does financial development matter in GCC countries?
No full textSupplemental Material for The Nexus between tourism-energy-environmental degradation: Does financial development matter in GCC countries? by Umar Farooq, Mosab I Tabash, Mamdouh Abdulaziz Saleh Al-Faryan, Cem Işık and Tarik Dogru in Tourism Economics</p
Critical challenges affecting Islamic banking growth in India using Analytical Hierarchy Process (AHP)
Get PDFThe banking sector plays a vital role in growth-supporting factor for economic growth in the world’s fastest-growing economies like India. Recently, Islamic banking has become an increasingly popular method for alleviating poverty, financial inclusion and economic development around the world. Its importance is highly needed in developing and emerging countries such as India. The main purpose of the paper is to identify and prioritize the critical impeding factors for Islamic banking growth in India. The study is conducted in two stages: the first stage involves investigating the current literature works regarding the challenges facing Islamic banking industry in India, while the second stage is based on identifying and prioritizing these challenges according to its importance in hindering Islamic banking growth by Analytic Hierarchy Process (AHP). AHP is a multi-criterion decision making tool for organizing and analyzing decisions, based on qualitative and quantitative measures. The results show that the regulatory environmental challenge is the most significant factor among other factors in impeding the growth of Islamic banking in India followed by lack of Islamic banking experts and scholars. The third main challenge is lack of awareness for Islamic banking instruments followed by lack of standardization and the last is lack of cooperation and coordination between Islamic banking authorities. This study is considered the first one to address empirically the challenges facing Islamic banking industry in the world and particularly in India
Islamic financial investments and economic growth evidence from emerging economy, United Arab Emirates
No full textIslamic financial investments and economic growth evidence from emerging economy, United Arab Emirates
No full textDo Islamic banks contribute to growth of the economy? Evidence from United Arab Emirates (UAE)
Get PDFIslamic finance has grown rapidly in the recent years particularly in the Middle East and the world. It receives a great attention of bankers and financial scholars due to its stability during financial shocks and crises. The paper uses empirical analysis to test the role of Islamic banking in enhancing the economic growth of United Arab Emirates (UAE). Gross Domestic Product (GDP), Gross formation (GF), and Foreign Direct Investment (FDI) are used as representatives for economic growth, while Islamic banks’ investments are used as a representative for Islamic financial sector in the UAE. The study uses time series techniques to test the link between the variables. In the current study, co-integration along with error correction models is utilized. All econometric work is done using Eviews. The findings reveal that the causal relationship between Islamic banks’ investments and economic growth of UAE is supply-leading direction. Furthermore, the findings depict that Islamic investments have contributed in increasing investments and in bringing FDI into the country in the long-term. The study also shows that there is two-way association between Islamic banks’ investments and FDI. It shows that FDI supports Islamic banking and Islamic banking brings FDI. The paper concludes that authorities of the UAE should devote more attention for this growing banking sector by facilitating regulations for establishing new Islamic banks and then creating a suitable environment for their growth and progress in the UAE
Islamic Banking and Economic Growth —
No full textThis paper explores empirically the relationship between the development of Islamic finance system and economic growth and its direction in Qatar. Using econometric analysis, annually time-series data of economic growth and Islamic banks’ financing from 1990 to 2008 were used. We use Islamic banks’ financing funds given by Islamic banks as a proxy for the development of Islamic finance system and Gross Domestic Product (GDP), and Gross Fixed Capital Formation (GFCF) as proxies for real economic growth. For the analysis, the unit root test, cointegration test and Granger causality tests were done. The empirical results generally signify that in the long run, Islamic banks’ financing is positive and significantly correlated with economic growth in Qatar which reinforces the idea that a well-functioning banking system promotes economic growth. Furthermore, the results show that Islamic banks’ financing has contributed to the increase of investment in the long term and in a positive way in Qatar. It is one of the first pioneering studies on Islamic Banking and economic growth in Qatar, and the first to be conducted in Middle East as well, thus it has a significant contribution to the body of knowledge The findings of research will be of interest to western and Islamic finance practitioners, policy makers and academicians, who are interested in Islamic finance industry
Journal of Emerging Economies and Islamic Research Islamic Financial Development and Economic Growth-- Empirical Evidence from United Arab Emirates
No full textAbstract This paper analyzes empirically the relationship between the development of Islamic finance system and growth of the economy in the United Arab Emirates (UAE). To document the relationship between development of Islamic finance and economic growth, time series data from 1990 to 2010 were used. We use Islamic banks' financing credited to private sector through modes of financing as a proxy for the development of Islamic finance system and Gross Domestic Product (GDP), Gross Fixed Capital Formation (GFCF), as proxies for real economic growth. For the analysis, the unit root test, cointegration test and Granger Causality tests were done. Our empirical results show that there is a strong positive association between Islamic banks' financing and economic growth in the UAE, which reinforces the idea that a well-functioning banking system promotes economic growth. However, our results indicate that a causal relationship happens only in one direction, i.e., from Islamic banks' financing to economic growth, which supports Schumpeter's supply-leading theory. In this case, the development in the Islamic financial sector acts as supply, leading to transfer of resources from the traditional, low-growth sectors to the modern high-growth sectors, and to promote and stimulate an entrepreneurial response in these modern sectors. Furthermore, the results show that Islamic Banks' financing has contributed to the increase of investment in UAE in the long term and in a positive way
The Impact of Oil Price Volatility, Gross Domestic Product, Foreign Direct Investment on Islamic Banking Investments: An Empirical Evidence of The United Arab Emirates
Get PDFThe current paper examines the impact of Oil Price (OP) fluctuations on Islamic banking investments growth in the UAE. Besides, oil price, the study also uses other variables like Gross Domestic Product (GDP) and Foreign Direct Investment (FDI) to identify the determinants of the Islamic banking investments growth in the emerging economy, UAE. The study is based on econometric analysis with the help of annual time series data from 1990 to 2015 for the study variables. Stationary tests, Cointegration methods, Vector Error Correction Model (VECM), and Granger causality tests are used in the analysis. The major findings of the study revealed that oil prices have long-term and short-term relationships on the Islamic banking investments in the UAE. Our results explore the importance of oil price stabilization in enhancing growth and progress in the UAE economy. The Government of UAE should reform policies and procedures to minimize the effect of such volatility in oil prices which in turn leads to positive impacts on the UAE economy as well.
Keywords: Oil Price, Volatility, FDI, GDP, Islamic investments, Growth, UAE.
JEL Classifications: F21, F41, O1
Are Macroeconomic Variables a Determinant of ETF Flow in South Africa Under Different Economic Conditions?
No full textThe objective of this study is to examine the effect of macroeconomic variables on exchange-traded funds (ETFs) returns under different market conditions. The growing prominence of ETFs in emerging markets has over the years drawn much relevance in the academic front for the ability to track the performance of prominent indices, which enhances return perspective. Despite this, ETF returns are influenced by many factors that dampen expected returns; these include macroeconomic variables and changing market conditions. To this extent, monthly data from November 2010 to December 2023 were used in the estimation of the Markov regime-switching model. The findings demonstrate that ETF returns are affected both positively and negatively by macroeconomic factors like inflation, money supply, interest rates, gross domestic product (GDP), and real effective exchange rate. More specifically, the effect tends to vary with market conditions such as bull and bear regimes. This implies there exists adaptive behavior among the ETF market in South Africa, suggesting there are periods of efficiencies and inefficiencies. The findings pose important implications to investors, portfolio managers, and policy makers, all of which is discussed herein
An Empirical Analysis of the Flow of Islamic Banking and Economic Growth in Bahrain
No full textIslamic banking and finance is one of the most rapidly growing segments of the global financial system and was expected to have a significant relationship and contribution towards the economic growth of any country. This paper explores empirically the relationship between the development of Islamic finance system and economic growth in kingdom of Bahrain. Using econometric analysis, annually time-series data of economic growth and Islamic banks’ financing from 1990 to 2008 were used. We use Islamic banks’ financing credited to private sector through modes of financing as a proxy for the development of Islamic finance system and Gross Domestic Product (GDP), as a proxy for economic growth. For the analysis, the unit root test, cointegration test and Granger causality tests were done. Our empirical results generally signify that in the long run Islamic banks’ financing is positive and significantly correlated with economic growth in Bahrain which reinforces the idea that a wellfunctioning banking system promotes economic growth. The results obtained from Granger causality test reveals a positive and statistically significant relationship between economic growth and Islamic banks’ financing in the long-term
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