DOES SUKUK FINANCING PROMOTE ECONOMIC GROWTH? AN EMPHASIS ON THE MAJOR ISSUING COUNTRIES
For the past few decades, Islamic finance has imposed itself as a viable alternative / complementary system to the long existing conventional financial system. Nevertheless, recent research has claimed that Islamic finance as it is currently practice, does not promote economic growth. Hence, the obj...
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| Format: | Article |
| Language: | English |
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İLKE İlim Kültür Eğitim Vakfı
2016-08-01
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| Series: | Türkiye İslam İktisadı Dergisi |
| Subjects: | |
| Online Access: | http://dergipark.ulakbim.gov.tr/beuntujise/article/view/5000199804 |
| _version_ | 1826908375708860416 |
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| author | Abdelghani ECHCHABI Hassanuddeen ABD.AZIZ Umar IDRISS |
| author_facet | Abdelghani ECHCHABI Hassanuddeen ABD.AZIZ Umar IDRISS |
| author_sort | Abdelghani ECHCHABI |
| collection | DOAJ |
| description | For the past few decades, Islamic finance has imposed itself as a viable alternative / complementary system to the long existing conventional financial system. Nevertheless, recent research has claimed that Islamic finance as it is currently practice, does not promote economic growth. Hence, the objective of this study is to empirically test this claim, by examining the potential effect of Islamic finance in the specific form of Sukuk issuance on the economic growth represented by three proxies, namely, Gross Domestic Product (GDP), Gross Capital Formation (GDP) and trade activities. The data covers not only GCC (Gulf Cooperation Council), but also other countries including Malaysia, Indonesia, Turkey, Pakistan, Singapore, China, Brunei, Kazakhstan, Germany, United Kingdom (UK), The Gambia and France. The data were collected from the Islamic Finance Information Services (IFIS) and the World Bank databases, and were subsequently analysed through Toda and Yamamoto Granger Non Causality test. Accordingly, the findings indicated that the Sukuk issuance had an influence on the GDP and GCF only when all the countries were pulled together, otherwise no effect was identified for Saudi Arabia and the GCC. |
| first_indexed | 2024-04-10T11:34:17Z |
| format | Article |
| id | doaj.art-78ec917de0524656bcb99379136ca1dc |
| institution | Directory Open Access Journal |
| issn | 2148-3809 2148-3809 |
| language | English |
| last_indexed | 2025-02-17T09:21:49Z |
| publishDate | 2016-08-01 |
| publisher | İLKE İlim Kültür Eğitim Vakfı |
| record_format | Article |
| series | Türkiye İslam İktisadı Dergisi |
| spelling | doaj.art-78ec917de0524656bcb99379136ca1dc2025-01-02T12:20:41ZengİLKE İlim Kültür Eğitim VakfıTürkiye İslam İktisadı Dergisi2148-38092148-38092016-08-0132637310.15238/tujise.2016.3.2.63-73DOES SUKUK FINANCING PROMOTE ECONOMIC GROWTH? AN EMPHASIS ON THE MAJOR ISSUING COUNTRIESAbdelghani ECHCHABI0Hassanuddeen ABD.AZIZ1Umar IDRISS2College of Business Administration, A’Sharqiyah University, Ibra, OmanFaculty of Economics and Management Sciences, International Islamic University MalaysiaCollege of Business, Effat University, Jeddah, Saudi ArabiaFor the past few decades, Islamic finance has imposed itself as a viable alternative / complementary system to the long existing conventional financial system. Nevertheless, recent research has claimed that Islamic finance as it is currently practice, does not promote economic growth. Hence, the objective of this study is to empirically test this claim, by examining the potential effect of Islamic finance in the specific form of Sukuk issuance on the economic growth represented by three proxies, namely, Gross Domestic Product (GDP), Gross Capital Formation (GDP) and trade activities. The data covers not only GCC (Gulf Cooperation Council), but also other countries including Malaysia, Indonesia, Turkey, Pakistan, Singapore, China, Brunei, Kazakhstan, Germany, United Kingdom (UK), The Gambia and France. The data were collected from the Islamic Finance Information Services (IFIS) and the World Bank databases, and were subsequently analysed through Toda and Yamamoto Granger Non Causality test. Accordingly, the findings indicated that the Sukuk issuance had an influence on the GDP and GCF only when all the countries were pulled together, otherwise no effect was identified for Saudi Arabia and the GCC.http://dergipark.ulakbim.gov.tr/beuntujise/article/view/5000199804Economic GrowthFinancial DevelopmentSaudi ArabiaIslamic financesukukeconomic growthfinancial development |
| spellingShingle | Abdelghani ECHCHABI Hassanuddeen ABD.AZIZ Umar IDRISS DOES SUKUK FINANCING PROMOTE ECONOMIC GROWTH? AN EMPHASIS ON THE MAJOR ISSUING COUNTRIES Türkiye İslam İktisadı Dergisi Economic Growth Financial Development Saudi Arabia Islamic finance sukuk economic growth financial development |
| title | DOES SUKUK FINANCING PROMOTE ECONOMIC GROWTH? AN EMPHASIS ON THE MAJOR ISSUING COUNTRIES |
| title_full | DOES SUKUK FINANCING PROMOTE ECONOMIC GROWTH? AN EMPHASIS ON THE MAJOR ISSUING COUNTRIES |
| title_fullStr | DOES SUKUK FINANCING PROMOTE ECONOMIC GROWTH? AN EMPHASIS ON THE MAJOR ISSUING COUNTRIES |
| title_full_unstemmed | DOES SUKUK FINANCING PROMOTE ECONOMIC GROWTH? AN EMPHASIS ON THE MAJOR ISSUING COUNTRIES |
| title_short | DOES SUKUK FINANCING PROMOTE ECONOMIC GROWTH? AN EMPHASIS ON THE MAJOR ISSUING COUNTRIES |
| title_sort | does sukuk financing promote economic growth an emphasis on the major issuing countries |
| topic | Economic Growth Financial Development Saudi Arabia Islamic finance sukuk economic growth financial development |
| url | http://dergipark.ulakbim.gov.tr/beuntujise/article/view/5000199804 |
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