MARK-UP VS. INTEREST-BASED FINANCING ON GDP: AN APPLICATION OF AGENT-BASED COMPUTATIONAL MODEL
This study aims to introduce the application of artificial intelligence in the area of Islamic finance by examining the dynamic changes of gross domestic product (GDP) under fully markup-based financing. The application of artificial intelligence using agent-based computational model (ABM) is employ...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Bank Indonesia
2021-02-01
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| Series: | Journal of Islamic Monetary Economics and Finance |
| Subjects: | |
| Online Access: | https://jimf-bi.org/index.php/JIMF/article/view/1345 |
| _version_ | 1797870527742738432 |
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| author | Diyah Putriani Gairuzazmi Mat Ghani Mira Kartiwi |
| author_facet | Diyah Putriani Gairuzazmi Mat Ghani Mira Kartiwi |
| author_sort | Diyah Putriani |
| collection | DOAJ |
| description | This study aims to introduce the application of artificial intelligence in the area of Islamic finance by examining the dynamic changes of gross domestic product (GDP) under fully markup-based financing. The application of artificial intelligence using agent-based computational model (ABM) is employed to conduct the simulation. The simulation result shows that the movement of GDP under markup-based financing which represents Islamic financial system has better performance compared to interest-based lending. In this regard, profit shared to depositors has positive impact on GDP which also proofs that Islamic banking system may promote sustainable economic growth and may create wealth for the whole society. This study proofs that Islamic bank essentially more stable than conventional bank and hence may fights against crisis. This study is potentially the initial work to examine the dynamic changes of economic growth under fully Islamic financial system by applying artificial intelligence concept as its methodology. Thus, this study is expected to contribute to the development of Islamic economics and finance research. |
| first_indexed | 2024-04-10T00:28:50Z |
| format | Article |
| id | doaj.art-7eec46f06d61464d9bfffab5befde2cc |
| institution | Directory Open Access Journal |
| issn | 2460-6146 2460-6618 |
| language | English |
| last_indexed | 2024-04-10T00:28:50Z |
| publishDate | 2021-02-01 |
| publisher | Bank Indonesia |
| record_format | Article |
| series | Journal of Islamic Monetary Economics and Finance |
| spelling | doaj.art-7eec46f06d61464d9bfffab5befde2cc2023-03-15T04:30:42ZengBank IndonesiaJournal of Islamic Monetary Economics and Finance2460-61462460-66182021-02-0171557610.21098/jimf.v7i1.13451345MARK-UP VS. INTEREST-BASED FINANCING ON GDP: AN APPLICATION OF AGENT-BASED COMPUTATIONAL MODELDiyah Putriani0Gairuzazmi Mat Ghani1Mira Kartiwi2Universitas Gadjah Mada, IndonesiaInternational Islamic University Malaysia, MalaysiaInternational Islamic University Malaysia, MalaysiaThis study aims to introduce the application of artificial intelligence in the area of Islamic finance by examining the dynamic changes of gross domestic product (GDP) under fully markup-based financing. The application of artificial intelligence using agent-based computational model (ABM) is employed to conduct the simulation. The simulation result shows that the movement of GDP under markup-based financing which represents Islamic financial system has better performance compared to interest-based lending. In this regard, profit shared to depositors has positive impact on GDP which also proofs that Islamic banking system may promote sustainable economic growth and may create wealth for the whole society. This study proofs that Islamic bank essentially more stable than conventional bank and hence may fights against crisis. This study is potentially the initial work to examine the dynamic changes of economic growth under fully Islamic financial system by applying artificial intelligence concept as its methodology. Thus, this study is expected to contribute to the development of Islamic economics and finance research.https://jimf-bi.org/index.php/JIMF/article/view/1345agent-based computational modelinterest-based lendingmarkup-based financinggdp growth |
| spellingShingle | Diyah Putriani Gairuzazmi Mat Ghani Mira Kartiwi MARK-UP VS. INTEREST-BASED FINANCING ON GDP: AN APPLICATION OF AGENT-BASED COMPUTATIONAL MODEL Journal of Islamic Monetary Economics and Finance agent-based computational model interest-based lending markup-based financing gdp growth |
| title | MARK-UP VS. INTEREST-BASED FINANCING ON GDP: AN APPLICATION OF AGENT-BASED COMPUTATIONAL MODEL |
| title_full | MARK-UP VS. INTEREST-BASED FINANCING ON GDP: AN APPLICATION OF AGENT-BASED COMPUTATIONAL MODEL |
| title_fullStr | MARK-UP VS. INTEREST-BASED FINANCING ON GDP: AN APPLICATION OF AGENT-BASED COMPUTATIONAL MODEL |
| title_full_unstemmed | MARK-UP VS. INTEREST-BASED FINANCING ON GDP: AN APPLICATION OF AGENT-BASED COMPUTATIONAL MODEL |
| title_short | MARK-UP VS. INTEREST-BASED FINANCING ON GDP: AN APPLICATION OF AGENT-BASED COMPUTATIONAL MODEL |
| title_sort | mark up vs interest based financing on gdp an application of agent based computational model |
| topic | agent-based computational model interest-based lending markup-based financing gdp growth |
| url | https://jimf-bi.org/index.php/JIMF/article/view/1345 |
| work_keys_str_mv | AT diyahputriani markupvsinterestbasedfinancingongdpanapplicationofagentbasedcomputationalmodel AT gairuzazmimatghani markupvsinterestbasedfinancingongdpanapplicationofagentbasedcomputationalmodel AT mirakartiwi markupvsinterestbasedfinancingongdpanapplicationofagentbasedcomputationalmodel |