Demand Elasticity Analysis of Islamic Banking Financing in Indonesia

<p>This research aims to analyze the elasticity of demand for Islamic bank's financing in Indonesia. The variables observed in this study is inflation and income per capita. This research uses time series of data for the period 2004-2015, which is a secondary data. The Data is sourced fro...

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Main Author: Eka Fitriyanti
Format: Article
Language:English
Published: Asosiasi Fakultas Ekonomi & Bisnis Indonesia (AFEBI) 2017-08-01
Series:AFEBI Islamic Finance and Economic Review
Online Access:https://journal.afebi.org/index.php/aifer/article/view/64
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author Eka Fitriyanti
author_facet Eka Fitriyanti
author_sort Eka Fitriyanti
collection DOAJ
description <p>This research aims to analyze the elasticity of demand for Islamic bank's financing in Indonesia. The variables observed in this study is inflation and income per capita. This research uses time series of data for the period 2004-2015, which is a secondary data. The Data is sourced from the central bank of Indonesia and Indonesian Central Bureau of Statistics, the models used in this study is a model of multiple regression equations and Analyzed using Ordinary Least Squares (OLS). Based on the estimates, the Research found that the inflation and income per capita significantly influence elasticity of demand for Islamic bank's financing in Indonesia. The elasticity of demand for Islamic bank's financing is inelastic to changes in price. This means that the demand Islamic bank's financing in Indonesia are not sensitive to changes in price. So, Islamic banks must be-able using other factors for growth Reviews their financing.</p><p><br />Keywords: Elasticity of Demand, Income per Capita, Inflation, Islamic bank’s financing</p>
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spelling doaj.art-12c1d23eecca429b8bb5ccf2c4e9bf5d2022-12-22T03:25:24ZengAsosiasi Fakultas Ekonomi & Bisnis Indonesia (AFEBI)AFEBI Islamic Finance and Economic Review2548-52882548-52962017-08-01201617410.47312/aifer.v2i01.6446Demand Elasticity Analysis of Islamic Banking Financing in IndonesiaEka Fitriyanti0Universitas Bangka Belitung<p>This research aims to analyze the elasticity of demand for Islamic bank's financing in Indonesia. The variables observed in this study is inflation and income per capita. This research uses time series of data for the period 2004-2015, which is a secondary data. The Data is sourced from the central bank of Indonesia and Indonesian Central Bureau of Statistics, the models used in this study is a model of multiple regression equations and Analyzed using Ordinary Least Squares (OLS). Based on the estimates, the Research found that the inflation and income per capita significantly influence elasticity of demand for Islamic bank's financing in Indonesia. The elasticity of demand for Islamic bank's financing is inelastic to changes in price. This means that the demand Islamic bank's financing in Indonesia are not sensitive to changes in price. So, Islamic banks must be-able using other factors for growth Reviews their financing.</p><p><br />Keywords: Elasticity of Demand, Income per Capita, Inflation, Islamic bank’s financing</p>https://journal.afebi.org/index.php/aifer/article/view/64
spellingShingle Eka Fitriyanti
Demand Elasticity Analysis of Islamic Banking Financing in Indonesia
AFEBI Islamic Finance and Economic Review
title Demand Elasticity Analysis of Islamic Banking Financing in Indonesia
title_full Demand Elasticity Analysis of Islamic Banking Financing in Indonesia
title_fullStr Demand Elasticity Analysis of Islamic Banking Financing in Indonesia
title_full_unstemmed Demand Elasticity Analysis of Islamic Banking Financing in Indonesia
title_short Demand Elasticity Analysis of Islamic Banking Financing in Indonesia
title_sort demand elasticity analysis of islamic banking financing in indonesia
url https://journal.afebi.org/index.php/aifer/article/view/64
work_keys_str_mv AT ekafitriyanti demandelasticityanalysisofislamicbankingfinancinginindonesia