scholarly journals Islamic Philanthropy and Poverty Reduction in Indonesia: The Role of Integrated Islamic Social and Commercial Finance Institutions

2021 ◽  
Vol 16 (2) ◽  
pp. 274-301
Author(s):  
Azwar Iskandar ◽  
Bayu Taufiq Possumah ◽  
Khaerul Aqbar ◽  
Akhmad Hanafi Dain Yunta
Keyword(s):  
Financial Stability ◽  
Poverty Reduction ◽  
Annual Data ◽  
Economic Problems ◽  
Distributed Lag ◽  
Long Run ◽  
Auto Regressive ◽  
The Impact ◽  
Commercial Finance

The recent studies about the role of Islamic philanthropy in addressing socio-economic problems have been growing and confirming its significant role in overcoming the problem. This is in line with the existence of regulations that support the effectiveness of its role in poverty reduction in Indonesia, such as Law No. 23 of 2011 on Zakat Management and Law No. 41 of 2004 on Waqf. This study has two objectives. First, to analyze the impact of Islamic philanthropy on poverty reduction as the socio-economic problems in Indonesia in the short and long run. Second, to analyze the effectiveness of integrated Islamic commercial and social-economic or finance to address the poverty compared to unintegrated one. This study used Auto-Regressive Distributed Lag (ARDL) approach to analyze annual data for the period of 2002-2019 while investigating the long and short-run relationships among variables. It found that Islamic philanthropy reduces poverty both in the short and long run, particularly in the integration of Islamic social and commercial finance in a single model. The government should therefore include Islamic philanthropy or other Islamic social finances as a fundamental strategy for building financial stability and sustainable development. (Menjamurnya studi-studi terbaru terkait peran filantropi Islam dalam mengatasi masalah sosial-ekonomi telah mengkonfirmasi peran pentingnya dalam mengatasi masalah ini.  Hal ini sejalan dengan adanya regulasi yang mendukung efektivitas perannya dalam pengentasan kemiskinan di Indonesia, seperti Undang-Undang Nomor 23 Tahun 2011 tentang Pengelolaan Zakat dan Undang-Undang Nomor 41 Tahun 2004 tentang Wakaf. Penelitian ini memiliki dua tujuan. Pertama, untuk menganalisis dampak filantropi Islam terhadap penurunan tingkat kemiskinan sebagai sebuah permasalahan sosial-ekonomi di Indonesia, baik dalam jangka pendek maupun jangka panjang. Kedua, untuk menganalisis efektifitas integrasi atau antara filantropi dan komersial dalam kerangka ekonomi Islam dalam mengatasi permasalahan kemiskinan. Penelitian ini menggunakan pendekatan Auto-Regressive Distributed Lag (ARDL) untuk menginvestigasi hubungan jangka pendek dan jangka panjang antara filantropi Islam dan tingkat kemiskinan selama periode tahun 2002-2019. Penelitian ini menemukan bahwa filantropi Islam dapat menurunkan tingkat kemiskinan baik dalam jangka pendek maupun jangka panjang. Penelitian ini juga menemukan bahwa ketika filantropi dan komersial dalam kerangka ekonomi Islam diintegrasikan, tingkat kemiskinan dapat diturunkan baik dalam jangka pendek maupun jangka panjang. Pemerintah seyogiyanya menempatkan filantropi Islam sebagai kebijakan dan strategi fundamental dalam rangka mewujudkan stabilitas keuangan dan pembangunan berkelanjutan.)

scholarly journals The nexus between the economic growth and unemployment in Jordan

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Hala Hjazeen ◽  
Mehdi Seraj ◽  
Huseyin Ozdeser
Keyword(s):  
Economic Growth ◽  
Unemployment Rate ◽  
Urban Population ◽  
Empirical Finding ◽  
Female Population ◽  
Distributed Lag ◽  
Long Run ◽  
Auto Regressive ◽  
The Impact ◽  
The Relationship

AbstractThe main objective of this study is to investigate the impact of unemployment on Jordan's economy over the period 1991–2019. This study used the auto-regressive distributed lag (ARDL) model to investigate the relationship between the unemployment rate and the other variables. Also, we employ the ARDL bootstrap cointegration approach to examine the correlation and long-run relationship among the variables. The empirical finding indicated a long-run relationship between the unemployment rate, economic growth, education, female population, and urban population in Jordan. Our finding shows the negative linkage between economic growth and unemployment, and a positive relationship among the education, female population, and urban population and unemployment in Jordan.

scholarly journals Does Inflation have Effect on Economic Growth? Empirical Evidence from Pakistan

2020 ◽  
Vol 1 (1) ◽  
pp. 41-52
Author(s):  
Raima Nazar ◽  
Aisha Ambreen ◽  
Sumbal Sabtain
Keyword(s):  
Economic Growth ◽  
Inflation Rate ◽  
Negative Impact ◽  
Annual Data ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Lag Model ◽  
Auto Regressive ◽  
The Impact ◽  
Model Technique

Pakistan is one of the developing countries instead of possessing large amount of natural resources like mines, reserves of coal, adequate amount of minerals and oil, But, Pakistan is still deprived of basic necessities of life and suffering from extreme inflation in the country. Therefore, this study is an attempt to synopsis the impact of inflation on GDP of Pakistan. This study mainly focus on the inflation rate from the period 1980 to 2016, time series annual data has been employed in the study. The Auto Regressive Distributed Lag Model technique is applied in the study in order to estimate and analyze the data. The study concludes that inflation indicates negative impact on the GDP of Pakistan and it can only be minimized if all resources of the country are properly allocated and fully utilized.

Does Nominal Devaluation Improve Income Distribution? Evidence from Bangladesh

2012 ◽  
Vol 19 (1) ◽  
pp. 61-77
Author(s):  
Muhammad Shahbaz ◽  
Mohammad Mafizur Rahman
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Trade Openness ◽  
Bounds Testing ◽  
Correction Model ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact

The article aims to investigate the impact of nominal devaluation on income distribution in Bangladesh both in short and long runs. In doing so, Auto Regressive Distributed Lag (ARDL) bounds testing has been employed for cointegration, and Error Correction Model (ECM) has been used for short-run dynamics. The empirical psychology has confirmed the existence of long-run relationship between the variables. Furthermore our estimated results reveal that nominal devaluation tends to decrease income inequality. Though economic growth appears to improve income distribution, non-linear link between both the variables, however, depicts Kuznets’ inverted-U curve (1955). Financial development causes further deterioration in income distribution. Trade openness contributes to income inequality as discussed in Leontief Paradox.

scholarly journals Dynamics of Financial Development, Economic Growth, and Poverty Alleviation: The Indonesian Experience

2018 ◽  
Vol 13 (1) ◽  
pp. 17-30 ◽  
Author(s):  
Sovia Dewi ◽  
M. Shabri Abd. Majid ◽  
Salina Kassim ◽  
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Financial Sector ◽  
Poverty Rate ◽  
Development Economic ◽  
Annual Data ◽  
Distributed Lag ◽  
Long Run ◽  
The Government

Abstract Although the poverty rate in Indonesia has been declining in the last several years, the rate of poverty decline is slowing down. In order to achieve its poverty reduction target within the stipulated time period, the government has stepped up efforts to enhance the contribution of the financial sector towards poverty reduction. This study aims to empirically explore the interlinkages between financial sector development and poverty reduction in Indonesia. Focusing on annual data covering the period from 1980 to 2015, the study adopts the Autoregressive Distributed Lag (ARDL) cointegration approach to examine the long-run relationship between the variables. The study found that there is a long-run relationship between financial development, economic growth, and poverty reduction in Indonesia. It also documented a unidirectional causality running from the financial sector to poverty reduction and a bidirectional causality between economic growth and poverty reduction. Therefore, policies to ensure the conducive growth of the financial sector would go a long way in promoting the economy, creating employment opportunities, and consequently accelerating poverty eradication

Globalisation, Economic Growth and Income Inequality in Nigeria

2020 ◽  
Vol 14 (2) ◽  
pp. 202-212
Author(s):  
NWOSA Philip Ifeakachukwu
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Secondary Data ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact ◽  
Financial Globalisation

This article examines the link between globalisation, economic growth and income inequality in Nigeria using annual secondary data over the period 1981–2018. Specifically, it attempts to examine the following questions: (a) What is the direction of causation among globalisation, economic growth and inequality? (b) What is the impact of globalisation and economic growth on inequality? (iii) Do trade globalisation and financial globalisation have differential impacts on inequality in Nigeria? The article used both vector error correction modelling (VECM) and auto-regressive distributed lag (ARDL) techniques. The VECM results show a unidirectional causality from inequality and globalisation to economic growth in the long run, whereas a unidirectional causation was observed from inequality to economic growth in the short run. The ARDL estimate shows that globalisation and economic growth are significant determinants of inequality in Nigeria. Furthermore, it is observed that trade and financial globalisation influenced income inequality differently. In the light of these findings, the article recommends that the foreign direct investment should be channelled towards empowering the poor, and the dividends of economic growth should be evenly distributed to reduce the income inequality gap.

scholarly journals The nexus between financial development and poverty reduction in Egypt

2018 ◽  
Vol 3 (2) ◽  
pp. 40-55
Author(s):  
Vivian Bushra Kheir
Keyword(s):  
Private Sector ◽  
Financial Development ◽  
Poverty Reduction ◽  
Incentive Structure ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Credit ◽  
Per Capita ◽  
The Impact

Purpose The purpose of this study is to empirically examine the impact of financial development on poverty reduction in Egypt. The paper also investigates whether financial development affects poverty via gross domestic product (GDP) growth. Design/methodology/approach This study uses the autoregressive distributed lag approach to estimate two specifications. The first is dependent on poverty by the ratio domestic credit to the private sector (percentage of GDP) and the second is dependent on the poverty by the ratio liquid liabilities to GDP or M3/GDP. The data are annual and cover the period from 1980 to 2015. Findings In long run, the study finds that relationship between economic growth and poverty is bidirectional. Financial development and poverty (household final consumption expenditure per capita) are complementary as bidirectional (in Granger sense). In short run, the study finds the bidirectional causality between financial development (real domestic credit to private sector per capita) and poverty reduction. Practical implications The findings suggest that governments should remove policies that impede the ability of banks to offer loan products or undermine the commercial incentive structure for banks or borrowers. It is crucial to enhance the role of specialized state-owned banks in financial intermediation. Social implications Several attempts have been made to investigate the relationship between financial development and other macroeconomic variables, but few studies have examined the impact of financial development on poverty reduction. Furthermore, the majority of the previous studies are based on Asia and Latin America – affording Egypt very little or no coverage at all.

Foreign inflows and economic growth in Pakistan: some new insights

2020 ◽  
Vol 13 (3) ◽  
pp. 97-113
Author(s):  
Muhammad Tahir ◽  
Ahmad Ali Jan ◽  
Syed Quaid Ali Shah ◽  
Md Badrul Alam ◽  
Muhammad Asim Afridi ◽  
...  
Keyword(s):  
Economic Growth ◽  
Employment Level ◽  
Content Type ◽  
Significance Level ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
External Sources ◽  
The Impact

Purpose The purpose of this paper is to explore the contending role of important external inflows on the economic growth of Pakistan economy. The main purpose behind focusing on Pakistan is that it is receiving significant inflows from different international sources such as International Monetary Fund, World Bank and Asian Development Bank. Design/methodology/approach The study adopted the autoregressive distributed lag cointegration approach for the purpose of exploring the long-run cointegrating relationship among the variables. As Pakistan Government had been implementing some major liberalization policies during 1990s, data from 1976 to 2018 is used to estimate the specified models to reflect the impact of the surge of foreign inflows occurring from that time. In addition, error correction model is estimated for examining the short-run relationships. Findings The findings revealed the significant role played by different inflows in accelerating the economic growth. According to results, in the long run, all inflows, for example, Foreign direct investment (FDI), debt, official developdment assistance and remittances, have influenced significantly and positively the economic growth. The two control variables such as inflation and employment level included in the model have also played their expected role in the growth process. In the short run, some of the variables such as remittances, FDI and inflation rate have lost their significance level while for debt, aid and employment level, the signs of their coefficients become reversed. Practical implications Based on the findings, the study suggests the policymakers of Pakistan economy to liberalize the economy and attract more inflows from the external sources to accelerate economic growth. Originality/value To the best of the authors’ knowledge, this is the first comprehensive empirical study on the role of foreign inflows in the process of economic growth in the context of Pakistan economy.

scholarly journals Capital Flight and Domestic Investment in Nigeria: Evidence From ARDL Methodology

2019 ◽  
Vol 11 (1) ◽  
pp. 348
Author(s):  
Lionel Effiom ◽  
Alfa Charles Achu ◽  
Samuel Etim Edet
Keyword(s):  
Cumulative Effect ◽  
Local Economy ◽  
Capital Flight ◽  
Domestic Investment ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact

Capital flight is a challenge for many developing countries of the world. The problem is more severe in a nation like Nigeria where domestic investment has been terribly affected. This study undertakes an empirical investigation of the impact of capital flight on domestic investment in Nigeria between 1980 and 2017. Deploying the Auto Regressive Distributed Lag (ARDL) econometric methodology, the study finds that capital flight has negative and significant impact on domestic investment. In particular, the long run impact of capital flight on domestic investment (0.57) turns out to be more severe than its impact in the short run (0.27), implying that a continuous and persistent build-up of capital flight exerts a negative cumulative effect on domestic investment over time. The study further reveals that the quality of institutions in Nigeria is a disincentive to domestic investment. It therefore recommends the strengthening of institutions to rein in on the illegal outflow of capital from the Nigerian economy in order to guarantee the availability of investible funds. The real sector of the local economy must be grown to bolster the value of the naira. This will stem the tide of capital flight and attract investments into critical sectors.

scholarly journals Environmental Impact of Economic Growth and Fuel Subsidy in Nigeria

2021 ◽  
Vol 2021 (1) ◽  
pp. 21-30
Author(s):  
Olawunmi Omitogun ◽  
Adedayo Emmanuel Longe ◽  
Shehu Muhammad ◽  
Idowu Jacob Adekomi
Keyword(s):  
Economic Growth ◽  
Government Policy ◽  
Carbon Emission ◽  
Correction Model ◽  
Independent Variables ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact

The study investigates the impact of economic growth and fuel subsidy on the environment of Nigeria from the year 1985-2018. We used Auto-regressive Distributed Lag (ARDL) to analyse the data employed in this study. From our findings, it was revealed that output per head had a positive and significant impact on carbon emission both in the long-run and short-run, while subsidy which explains government policy also had a negative and significant impact on carbon emission both in the short-run and long-run. The Error Correction Model (ECM) showed that 96% of shocks in the response variable are corrected in the long-run by the independent variables. It was concluded that increasing output in the economy increases the amount of carbon emission in the economy while removal of fuel subsidy reduces the amount of carbon emission in the economy. Therefore, effective policies should be implemented towards reducing carbon emission without hampering the growth of the economy.

scholarly journals The role of the globalisation process on mitigation of carbon dioxide emissions of Latin American & Caribbean countries

2021 ◽  
Vol 16 (45) ◽  
Author(s):  
Matheus Koengkan ◽  
José Alberto Fuinhas
Keyword(s):  
Carbon Dioxide ◽  
Panel Data ◽  
Latin American ◽  
Environmental Degradation ◽  
Carbon Dioxide Emissions ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
The Impact

The impact of globalisation on carbon dioxide emissions was analysed in a panel data of thirteen LAC countries for the period from 1991 to 2012. A panel autoregressive distributed lag methodology was used to decompose the total effects of globalisation on carbon dioxide emissions both in short- and long-run components. There is evidence that globalisation contributes to reducing carbon dioxide emissions in the long-run. A possible explanation of this result is that the process of globalisation causes technological enhancement in LAC countries, which contributes to a decrease in environmental degradation. Globalisation has other implications, such as the transfer of responsibility from the state to the private sector, where this transfer corresponds to the shifting of regulatory attributes to independent governmental regulatory authorities, in other words, “regulation for competition”.

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