Imam, Patrick and Kpodar, Kangni,(2016), Islamic banking: Good for growth? , Economic Modelling 59 (2016) 387–401, UNSPECIFIED
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Abstract
While a mature body of the economic literature has shown that financial development is broadly conducive to
economic growth, the question as to whether this also applies to the development of Islamic banking has not
been answered so far. We contribute to the analysis of the relationship between Islamic banking development
and economic growth using a sample of 52 countries with data covering the period 1990–2010. The results illustrate
that, notwithstanding its relatively small size compared to the economy and the overall size of the financial
system, Islamic banking is positively associated with economic growth, even after controlling for various determinants
of growth. The main channels of transmission include capital accumulation and improved financial inclusion,
in particular a better access to deposits. Many Islamic countries that currently suffer from low growth
should develop this segment of their banking sector further, through modernizing the legislative, regulatory,
and infrastructural environment for instance. Similarly, non-Islamic countries that adopt some practices fromIslamic
banking to their banking regulations may help spur growth as well
Keywords : | Islamic banking Financial development Economic growth, UNSPECIFIED |
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Journal or Publication Title: | Economic Modelling 59 (2016) 387–401 |
Volume: | 59 |
Number: | UNSPECIFIED |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Nila Nurjanah |
Date Deposited: | 19 Dec 2019 07:39 |
Last Modified: | 19 Dec 2019 07:39 |
URI: | https://repofeb.undip.ac.id/id/eprint/432 |