Sukuk Market and Economic Welfare Nexus: A Partial Equilibrium Approach
Due to its distinctive features and investment quality, sukuk as an Islamic alternative to bond financing, have known last decades a worldwide interest and a rapid widespread, particularly after the 2007-2008 global financial crisis. Despite the global market prevalence of sukuk, the literature on...
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| Format: | Article |
| Language: | English |
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EconJournals
2021-06-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/11507 |
| _version_ | 1797919556190076928 |
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| author | Jamel Boukhatem |
| author_facet | Jamel Boukhatem |
| author_sort | Jamel Boukhatem |
| collection | DOAJ |
| description |
Due to its distinctive features and investment quality, sukuk as an Islamic alternative to bond financing, have known last decades a worldwide interest and a rapid widespread, particularly after the 2007-2008 global financial crisis. Despite the global market prevalence of sukuk, the literature on the sukuk – economic wealth nexus still inexistant. In this study, we develop a basic model that captures the welfare effects of sukuk markets. The main finding shows the importance of a well-developed sukuk market in hedging interest rate and inflation risks effectively and, thereby improving investor welfare.
Keywords: Sukuk, Economic welfare, Partial equilibrium
JEL Classifications: D53 G15 D60
DOI: https://doi.org/10.32479/ijefi.11507
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| first_indexed | 2024-04-10T13:47:22Z |
| format | Article |
| id | doaj.art-0d289be17a55406aa4a4071e77beb28d |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:47:22Z |
| publishDate | 2021-06-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-0d289be17a55406aa4a4071e77beb28d2023-02-15T16:10:54ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382021-06-01113Sukuk Market and Economic Welfare Nexus: A Partial Equilibrium ApproachJamel Boukhatem0Umm al Qura University Due to its distinctive features and investment quality, sukuk as an Islamic alternative to bond financing, have known last decades a worldwide interest and a rapid widespread, particularly after the 2007-2008 global financial crisis. Despite the global market prevalence of sukuk, the literature on the sukuk – economic wealth nexus still inexistant. In this study, we develop a basic model that captures the welfare effects of sukuk markets. The main finding shows the importance of a well-developed sukuk market in hedging interest rate and inflation risks effectively and, thereby improving investor welfare. Keywords: Sukuk, Economic welfare, Partial equilibrium JEL Classifications: D53 G15 D60 DOI: https://doi.org/10.32479/ijefi.11507 http://mail.econjournals.com/index.php/ijefi/article/view/11507 |
| spellingShingle | Jamel Boukhatem Sukuk Market and Economic Welfare Nexus: A Partial Equilibrium Approach International Journal of Economics and Financial Issues |
| title | Sukuk Market and Economic Welfare Nexus: A Partial Equilibrium Approach |
| title_full | Sukuk Market and Economic Welfare Nexus: A Partial Equilibrium Approach |
| title_fullStr | Sukuk Market and Economic Welfare Nexus: A Partial Equilibrium Approach |
| title_full_unstemmed | Sukuk Market and Economic Welfare Nexus: A Partial Equilibrium Approach |
| title_short | Sukuk Market and Economic Welfare Nexus: A Partial Equilibrium Approach |
| title_sort | sukuk market and economic welfare nexus a partial equilibrium approach |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/11507 |
| work_keys_str_mv | AT jamelboukhatem sukukmarketandeconomicwelfarenexusapartialequilibriumapproach |