138 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
Towards a Scale of Islamic Work Ethic: Validation from Middle Eastern Countries
No full textThis paper aims at developing a valid scale of Islamic work ethics in the Middle Eastern region. Building on an extensive review of the work ethic scales presented in the literature, 15 items were formulated and assessed by experts in the field of Islamic studies. Data were collected from two samples: Sample A (N. 525) represents employees working in diverse sectors in Palestine and Jordan, and Sample B (N. 727) represents employees working in several sectors in Oman, Qatar, and UAE. Questionnaires were distributed online to the participants. Data were subject to different validity and reliability checks. These included exploratory factor analysis, confirmatory factor analysis, convergent validity, discriminant validity, and internal consistency. Our results suggested a 12-item unidimensional scale. The originality of this work stems from the fact that it presents the first Islamic work ethic scale developed and confirmed using data collected from several countries in the region
Critical challenges affecting Islamic banking growth in India using Analytical Hierarchy Process (AHP)
No full textThe 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 textAn empirical investigation between liquidity and key financial ratios of Islamic banks of United Arab Emirates (UAE)
No full textThis paper empirically analyzes the impact of liquidity risk on key financial performance aspects of Islamic banks in the UAE. To document the association between liquidity risk and other performance ratios, time series data are taken for full-fledged Islamic banks working in the UAE from 2000 to 2014. Liquidity ratios and capital adequacy ratios, profitability ratios, and tangibility ratios are determined. Correlation and regression analyses are used to test the study hypotheses using SPSS. The findings indicate that capital adequacy and tangibility ratios are the main factors to determine liquidity risk of UAE Islamic banks. Furthermore, the results showed that the size of Islamic banks’ assets and capital adequacy had a positive and significant association with liquidity risk. Policymakers and Islamic finance experts should devote more attention to enhancing the base of Islamic finance assets to manage liquidity issues
Do Islamic banks contribute to growth of the economy? Evidence from United Arab Emirates (UAE)
No full textIslamic 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
The Impact of COVID-19 on the Congolese Financial System : An empirical Investigation
No full textThe COVID-19 pass-through on the financial system moves at supersonic speed, undermining financial stability with a contraction of claims on the private sector, withdrawing deposits, and tightening the fiscal circumstances . The primary goal of this research is to investigate the unprecedented influenceof COVID-19 on the Congolese financial system. An autoregressive Vector Bayesian model is used to test the connection . The data utilized is a monthly series from December 2013 to October 2020. The results reveal that the COVID-19 pandemic has varying degrees of negative impact on the Congolese financial system. The Congolese government should immediately ado pt macroeconomic and financial policies by boosting and injecting liquidity into the banking sector to mitigate the negative consequences. At the same time, the expansion of Fintechs on the one hand and the expansion of cyberattacks on the other would enhance the financial system landscape . To maximize the digitization of the financial systems and enhance the effectiveness of cybersecurity, financial institutions should implement intelligent policies and invest in research. This study is the first to be done in Congo to the authors' best knowledge and serves as a battery for further research in Africa and the world
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
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