Unleashing open innovation: A decomposition nexus of Sharia-compliant financing and job creation
This study investigates the impact of Sharia-compliant financing on job creation in Indonesia. Utilizing provincial-level data and employing fixed effects panel data regression with the GLS estimator, we explore the decomposition effects of Sharia-compliant financing on job creation. Our findings re...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-12-01
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| Series: | Journal of Open Innovation: Technology, Market and Complexity |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2199853123002640 |
| _version_ | 1797391804641837056 |
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| author | Sri Budi Cantika Yuli Mochamad Rofik |
| author_facet | Sri Budi Cantika Yuli Mochamad Rofik |
| author_sort | Sri Budi Cantika Yuli |
| collection | DOAJ |
| description | This study investigates the impact of Sharia-compliant financing on job creation in Indonesia. Utilizing provincial-level data and employing fixed effects panel data regression with the GLS estimator, we explore the decomposition effects of Sharia-compliant financing on job creation. Our findings reveal that an increase in the market share of sharia-compliant financing in total, working capital, and consumption does not have a significant impact on job creation. Surprisingly, the share of sharia-compliant financing in investment shows a significant negative impact on job creation. However, it is important to note that overall, Sharia-compliant financing has a positive impact on increasing job creation. Specifically, Sharia-compliant financing for working capital exhibits the highest impact on job creation, followed by Sharia-compliant financing for investment and households. Based on these findings, we propose an open innovation framework to expand the dissemination of Sharia-compliant financing, with a particular focus on MSMEs, with the aim of enabling Islamic banks to play a pivotal role in job creation. |
| first_indexed | 2024-03-08T23:38:00Z |
| format | Article |
| id | doaj.art-a98d8fcf4aa64ca5865818a02efd49b6 |
| institution | Directory Open Access Journal |
| issn | 2199-8531 |
| language | English |
| last_indexed | 2024-03-08T23:38:00Z |
| publishDate | 2023-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj.art-a98d8fcf4aa64ca5865818a02efd49b62023-12-14T05:22:42ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312023-12-0194100162Unleashing open innovation: A decomposition nexus of Sharia-compliant financing and job creationSri Budi Cantika Yuli0Mochamad Rofik1Corresponding author.; Department of Economics Development, Faculty of Economics and Business, Universitas Muhammadiyah Malang, IndonesiaDepartment of Economics Development, Faculty of Economics and Business, Universitas Muhammadiyah Malang, IndonesiaThis study investigates the impact of Sharia-compliant financing on job creation in Indonesia. Utilizing provincial-level data and employing fixed effects panel data regression with the GLS estimator, we explore the decomposition effects of Sharia-compliant financing on job creation. Our findings reveal that an increase in the market share of sharia-compliant financing in total, working capital, and consumption does not have a significant impact on job creation. Surprisingly, the share of sharia-compliant financing in investment shows a significant negative impact on job creation. However, it is important to note that overall, Sharia-compliant financing has a positive impact on increasing job creation. Specifically, Sharia-compliant financing for working capital exhibits the highest impact on job creation, followed by Sharia-compliant financing for investment and households. Based on these findings, we propose an open innovation framework to expand the dissemination of Sharia-compliant financing, with a particular focus on MSMEs, with the aim of enabling Islamic banks to play a pivotal role in job creation.http://www.sciencedirect.com/science/article/pii/S2199853123002640Sharia-compliant financingIslamic bankJob creationUnemployment |
| spellingShingle | Sri Budi Cantika Yuli Mochamad Rofik Unleashing open innovation: A decomposition nexus of Sharia-compliant financing and job creation Journal of Open Innovation: Technology, Market and Complexity Sharia-compliant financing Islamic bank Job creation Unemployment |
| title | Unleashing open innovation: A decomposition nexus of Sharia-compliant financing and job creation |
| title_full | Unleashing open innovation: A decomposition nexus of Sharia-compliant financing and job creation |
| title_fullStr | Unleashing open innovation: A decomposition nexus of Sharia-compliant financing and job creation |
| title_full_unstemmed | Unleashing open innovation: A decomposition nexus of Sharia-compliant financing and job creation |
| title_short | Unleashing open innovation: A decomposition nexus of Sharia-compliant financing and job creation |
| title_sort | unleashing open innovation a decomposition nexus of sharia compliant financing and job creation |
| topic | Sharia-compliant financing Islamic bank Job creation Unemployment |
| url | http://www.sciencedirect.com/science/article/pii/S2199853123002640 |
| work_keys_str_mv | AT sribudicantikayuli unleashingopeninnovationadecompositionnexusofshariacompliantfinancingandjobcreation AT mochamadrofik unleashingopeninnovationadecompositionnexusofshariacompliantfinancingandjobcreation |