scholarly journals Role of Zakat as Social Finance Catalyst to Islamic Banking and Economic Growth

2017 ◽  
Vol 2 (2) ◽  
pp. 55-70 ◽  
Author(s):  
Ai Nur Bayinah
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Islamic Banking ◽  
Annual Data ◽  
Impulse Response Functions ◽  
Islamic Banks ◽  
West Java ◽  
Vector Autoregressive ◽  
The Impact ◽  
Integration Analysis

This paper is aimed to assess the contribution of Zakat in boosting Islamic banks’ financing and economic growth for the period 2011-2015, in 10 district/city of West Java Province, Indonesia. Through Vector Autoregressive (VAR) panel co-integration analysis, variance decompositions (VD) and impulse response functions (IRF), this study investigates Zakat, Islamic Banking, and economic growth nexus. Findings in this research highlight that Zakat has a significant impact on Islamic banking, so this institution would contribute to economic growth both in the short and the long run, with fluctuation in variance from the first year. The results lend support to the view that Zakat not only leads to social benefits but also has a positive impact on the economy through increasing Islamic banks’ financing. Therefore, this research will serve as a motivation for the industry players and regulators to continuously promote Zakat as a strategic policy. The originality of this research is to assess Zakat-led growth and finance by analyzing the impact of Zakat on the Islamic banking and regional economic outcome. Another novel aspect of this study is in the methodology as it employs VAR panel co-integration analysis, VDs and IRFs on the set of annual data. Keywords: Zakat, Islamic Banking Financing, Economic Growth, West Java

scholarly journals HIGHER EDUCATION AND ECONOMIC GROWTH A CASE STUDY OF PAKISTAN

2010 ◽  
Vol 27 (1) ◽  
Author(s):  
Tariq Mahmood
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Positive Impact ◽  
Public Expenditures ◽  
Annual Data ◽  
Unequal Distribution ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Education And Economic Growth

This paper highlights the role of higher education for the economic growth inPakistan. We explore the impact of increase in enrolment at tertiary level on thegrowth rate of income per worker. Estimating a growth model developed byMankiv et. al. (1992), using the annual data of Pakistan, we find a robustrelationship between higher education and economic growth in the long run. Themodel has also shown that investment in fixed capital has positive impact oneconomic uplift. Applying Johansen’s cointegration test, we show that the longrun elasticity of income with respect to capital stock is different from its share inGDP, and increase in the enrolment per unit of effective worker helps inbolstering economic growth. But, like earlier literature we also find statisticallyinsignificant relationship between higher education and GDP per worker. Thereare some fundamental reasons concerning to the ambiguous impact of investingin human capital on economic growth, particularly in the short run in case ofPakistan. First, the sharp increase in enrollment, recently, has been damaging thequality of education. Second, the unequal distribution of educational services hasheld back the efficiency of public expenditures, particularly before the reformsundertaken by higher education commission. Third, the low private return ofeducation has limited the demand for higher education in Pakistan for almost fiftyyears.

scholarly journals Causal nexus between fiscal deficit and economic growth

2016 ◽  
Vol 4 (8) ◽  
pp. 1-19
Author(s):  
Ravinthirakumaran Navaratnam ◽  
Kasavarajah Mayandy
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
South Asian ◽  
Negative Impact ◽  
Positive Impact ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Fiscal Deficit ◽  
Asian Countries ◽  
The Impact

The impact of fiscal deficit on economic growth is one of the most widely debated issues among economists and policy makers in both developed and developing countries in the recent period. This paper seeks to examine the impact of fiscal deficit on economic growth in selected South Asian countries, namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka using time series annual data over the period 1980 to 2014. The paper uses cointegration analysis, error correction modelling and Granger causality test under a Vector Autoregression (VAR) framework. The results from this study confirmed that the fiscal deficit has a negative impact on economic growth in the South Asian countries considered in this study except Nepal, which confirmed the positive impact. The results also highlighted that the direction of causality for the SAARC countries is mixed where fiscal deficit causes economic growth for Bangladesh, Nepal and Pakistan, but the reverse is true for India and Sri Lanka.  

scholarly journals The association between intellectual capital and financial performance in the Islamic banking industry

2019 ◽  
Vol 13 (1) ◽  
pp. 75-93 ◽  
Author(s):  
A.A. Ousama ◽  
Helmi Hammami ◽  
Mustafa Abdulkarim
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Value Added ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Gcc Countries ◽  
The Impact

Purpose The purpose of this study is to empirically investigate the impact of intellectual capital (IC) on the financial performance of Islamic banks operating in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach The study measures IC by the value added intellectual coefficient model. A regression analysis was used to assess the impact of IC on financial performance. The research sample consisted of Islamic banks operating in the GCC countries during the years 2011, 2012 and 2013. Data originated from the annual reports of Islamic banks. Findings The results support the thesis that IC has a positive impact on the financial performance of Islamic banks. Even though the average IC is lower than that reported in other studies, the positive effect on financial performance is obvious. The findings also show that human capital (HC) is higher than capital employed (CE) and structural capital (SC). The study reveals that SC has an insignificant impact on the financial performance of the Islamic banks compared to CE and HC. Practical implications The findings provide empirical evidence that IC affects the Islamic banks’ financial performance. It helps Islamic banks in the GCC countries to understand how to use their IC efficiently, especially SC as it is yet to be used efficiently. Also, the findings benefit the relevant authorities (e.g. legislators and central banks) who could use them to emphasise strategic policy reforms whenever required. Originality/value The current research adds to the empirical studies in the GCC countries as it views the region as a collective as opposed to individual countries. It also extends the IC and performance measurement literature of Islamic banks in the GCC countries. Moreover, the current study enriches the limited literature on IC in the context of Islamic banking.

scholarly journals Structural Vector Autoregressive Approach to Evaluate the Impact of Electricity Generation Mix on Economic Growth and CO2 Emissions in Iran

Energies ◽  
2020 ◽  
Vol 13 (16) ◽  
pp. 4268 ◽  
Author(s):  
Bahareh Oryani ◽  
Yoonmo Koo ◽  
Shahabaldin Rezania
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Carbon Dioxide Emissions ◽  
Electricity Generation ◽  
Positive Impact ◽  
Renewable Electricity ◽  
Vector Autoregressive ◽  
Stage Of Development ◽  
The Impact ◽  
Structural Vector

This research attempts to evaluate the impact of renewable electricity generation mix on economic growth and CO2 emissions in Iran from 1980 to 2016. In this regard, by using EViews 10, the Structural Vector Autoregressive model (SVAR) is estimated by imposing the Blanchard and Quah long-run restrictions. The yearly data on real Gross Domestic Production (GDP), the share of electricity generation from renewable sources, and carbon dioxide emissions (CO2) caused by liquid, solid, and gaseous fuels were used. The positive impact of one standard deviation shock of increasing the share of renewable electricity on economic growth was confirmed by using Impulse Response Function (IRF). Contrary to the expectation, the share of renewable electricity in the energy mix is not at a desirable level to lower CO2 emissions, which partly could be explained by the dominant role of fossil fuel in Iran (as an energy-driven country). Moreover, the findings of Variance Decomposition (VD) verified the low share of electricity generated by renewable energy in explaining forecast error variations in economic growth and CO2 emissions. It indicates that in this stage of development, increasing the share of renewable electricity could not be considered as an appropriate strategy to control environmental issues. Therefore, initiating and implementing environmental policies could be considered as the most proper policies to lower CO2 emissions and to achieve the goal of sustainable development.

scholarly journals The Impact of Islamic Banking on the Jordanian Economy Compared with Commercial Banks

2016 ◽  
Vol 8 (3) ◽  
pp. 244
Author(s):  
Taha Barakat Al-shawawreh
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Commercial Banks ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Impact

<p>This research aims to evaluate the role of Islamic Banking in supporting the economic growth in Jordan, compared y commercial banks. Data was collected from the literature and the annual reports of two Jordanian banks representing Islamic and commercial banks. By analyzing the figures of the two banks, the results showed that Islamic banks have more ability to support the economic development in the Kingdom.</p>

The Impact of Financial Deepening on Economic Growth in Jordan: Econometric Study (1980-2015)

2017 ◽  
Vol 5 (1) ◽  
pp. 35-53
Author(s):  
Ahmad Abdelkhaleq Ahmad Jabae ◽  
Ahmad Ibrahim Malawi
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Annual Data ◽  
Financial Deepening ◽  
Interest Rate Spread ◽  
Study Results ◽  
Stationary Test ◽  
The Impact ◽  
Integration Analysis

This study aimed to investigate the effect of financial deepening on the economic growth for the case of Jordan during the period of 1980-2016. To this end, the study used multiple econometric model based on Autoregressive Distribution Lag approach (ARDL) and co-integration analysis among the variables based on annual data. Philips-Perron (PP) test have been utilized for stationary test. The study results show that there is positive and significant effects between the financial deepening and economic growth when the amount of broad money supply/gross demostic product is used as proxy of financial deepening, and there are negative and significantly effects between financial deepening indicators were captured by interest rate spread, credit to the private sector, and negative insignificantly effects between commercial –central bank assests and economic growth. Based on the obtained results the study recommended to develop the  role of financial sectors to increase the degree of  financial deepening in the Jordanian economy, and directing the bank credit to the highly productive sectors, and reconsidering the interest rates on deposits and  loans to increase the financial deepening degree in the Jordanian economy.

scholarly journals Kebijakan Spin-off dan Efisiensi Perbankan Syariah di Indonesia

2019 ◽  
Vol 2 (1) ◽  
pp. 21
Author(s):  
Zulfikar Bagus Pambuko
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Panel Data ◽  
Islamic Banking ◽  
Annual Data ◽  
Islamic Banks ◽  
Growth Data ◽  
Panel Data Regression ◽  
Data Regression ◽  
Negative Effect

The study aims to analyse the spin-off policies’ impact on the Islamic banks’ efficiency in Indonesia. The study was conducted on five spin-off Islamic banks and efficiency were measured by the BOPO ratio. The research variables used were dummy spin-off, ROA, FDR, and economic growth. Data analysis used panel data regression on annual data from 2008 to 2018. The results suggest that, first, the implementation of spin-off policy significantly increased the operational efficiency of Islamic banking. Second, ROA also has a negative effect on efficiency. Third, FDR and economic growth have no significant effect on the Islamic banks’ efficiency in Indonesia.

scholarly journals THE IMPACT OF REMITTANCES ON ECONOMIC GROWTH IN WESTERN BALKANS – A PANEL APPROACH

2021 ◽  
Author(s):  
Predrag Trpeski ◽  
◽  
Borce Trenovski ◽  
Gunter Merdzan ◽  
Kristijan Kozeski ◽  
...  
Keyword(s):  
Economic Growth ◽  
Small Businesses ◽  
Capital Investment ◽  
Positive Impact ◽  
Solid Base ◽  
Annual Data ◽  
Western Balkans ◽  
Development Indicators ◽  
The Impact ◽  
The Relationship

The migration is one of the constitutive features of Western Balkans’ historical specificity, which significantly changed Balkan societies in the last two centuries. One crucial effect of intensive emigration is high remittances. Cross-country analyses and evidence from household surveys suggest that migration and remittances reduce poverty in the origin communities. In addition, remittances lead to increased investment in education, health, and small businesses. The diaspora can be a source of capital, investment, knowledge, and technology transfer. The inflow of remittances can contribute to the economic development of the remittance-receiving country, provided that the country can use these funds to finance investments that will enable it to produce export or investment goods to replace imports. This paper examines the impact of remittances on economic growth in the Western Balkans (North Macedonia, Serbia, Albania, Kosovo, Montenegro, and Bosnia and Herzegovina) last two decades. The relationship between economic growth, remittances, final household consumption, domestic investments, and trade is examined through a panel approach. The paper uses annual data obtained from the World Bank World Development Indicators. The results of the empirical analysis help determine the relationship between remittances and economic growth and provide a solid base for policymakers to direct remittances into productive investments. The general conclusion for the region is the need to implement policies that will strengthen the financial system to enable a more significant positive impact of remittances from migrants on economic growth.

scholarly journals The Impact of Jordan’s Conventional and Islamic Banking Development Factors on Economic Growth

2016 ◽  
Vol 8 (9) ◽  
pp. 148 ◽  
Author(s):  
Nafith Fayez AL-Hersh
Keyword(s):  
Economic Growth ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Investment Opportunity ◽  
Variance Inflation Factor ◽  
Inflation Factor ◽  
Conventional Banks ◽  
The Impact ◽  
Banking Development ◽  
Regression Correlation

This study aimed to explore the impact of Jordan’s Conventional and Islamic Banking Development Factors on Economic Growth during the period (2000-2015). A sample of four Islamic banks and eight conventional banks was tested. A group of statistical methods such as Multiple Regression, Correlation, Variance Inflation Factor (VIF), T-Test, were applied. The study found that there is significant different between the impact of Conventional and Islamic Banking Factors on RGDP attributed to Total Assets, Liquid Assets, Total Deposits and Total Facilities.In addition, Islamic banks had a much impact on Economic growth as compared to conventional banks. The study recommended the Islamic Banking Sectorto introduce a new innovative financial instruments and tools to push the economic growth forward and to increase the investment opportunity and lead to higher contribution to Economic Growth in Jordan.

scholarly journals The Impact of Tourism Quality on Economic Development and Environment: Evidence from Mediterranean Countries

2019 ◽  
Vol 11 (8) ◽  
pp. 2296 ◽  
Author(s):  
Ren Taizeng ◽  
Muhlis Can ◽  
Sudharshan Reddy Paramati ◽  
Jianchun Fang ◽  
Wanshan Wu
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Environmental Pollution ◽  
Negative Impact ◽  
Positive Impact ◽  
Income Level ◽  
Tourism Industry ◽  
Annual Data ◽  
Mediterranean Countries ◽  
The Impact

This paper is the first of its kind to measure the income level of a country’s tourist arrival and empirically examine its impact on economic growth and environmental pollution in a sample of eight Mediterranean countries. The paper undertakes annual data from 1995 to 2014 and employs quantile regression models, autoregressive distributed lag (ARDL) estimations, and a heterogeneity causality test. The empirical results show that the income level of a country’s tourist arrival, across all quantiles, plays an important role in promoting economic development. However, the role of the income level of a country’s tourist arrival on environmental pollution varies with the changes in quantiles. More specifically, income level of a country’s tourist arrival has a positive impact on environmental pollution for the lower quantiles, while it has a negative impact for higher quantiles. The findings from panel ARDL models confirm that the income level of a country’s tourist arrival has positive and negative impacts on economic growth and emissions, respectively. Given these results, these findings provide information to take the necessary actions to ensure sustainable tourism development, i.e., the expansion of the tourism industry without harming the environment in the Mediterranean countries.

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