Islamic banks are exposed to a unique risk such as Displaced Commercial Risk (DCR). DCR arises from the assets managed on behalf of the investment account holders which may be borne by the Islamic bank’s own capital, when the Islamic banks forgo part or all of its share of profits on the investment account holders funds, in order to increase the return to the investment account holders. In a dual banking system, DCR could be a threat to the Islamic banks given the competition of fixed and higher return from the conventional banks. However, DCR would not be a threat to Islamic banks if their account holders choose Islamic banks due to religious obligatory factor. Pertaining to this issue, this paper aims to identify the determinants of factors influencing the DCR among the Islamic banks in the case of Malaysia. Results of the study suggest that the DCR is significantly determined by the Investment account holder funds, Islamic deposit, rate of return, and interest rate.
This paper attempts to view at the development of Islamic thought in the study of economics and economic growth. In particular, it attempts to explore the similarities and differences between Islamic ideas about economics and to construct economic growth thought and how it used to bridge the gap. The analysis starts from Muslim thought Ibn Khaldun, Al-Ghazali and Ibn Taymiyyah. In addition, the study looked at how the views of classical Islamic scholars had entered into the idea of economic growth. Suggestions will be made on how the gap can be bridged or made closer to contemporary economic thought and economic direction of the country’s future.
Purpose This paper aims to investigate empirically whether creative industries are boosting the economic performance of the ASEAN countries (Malaysia, Indonesia, Singapore, Thailand, Vietnam and Brunei Darussalam) during the Coronavirus disease (COVID-19) pandemic. Design/methodology/approach This paper applied a random effect and fixed effect estimation approach to investigate the impact of creative industries’ development (government expenditure on education, export of creative industries, trade openness, innovation index, sukuk issuances) on the economic performance spanning from 2010 to 2020. Findings The economic performance was proxied by two dependent variables, namely, the gross domestic product and the Misery Index. On top of containment and vaccination measures, the findings demonstrated that creative industries are enhancing economic growth in Association of Southeast Asian Nations (ASEAN) countries, supported by the significant role of the sukuk market as a vital contributor to economic growth. Originality/value This study is unique because it provides novel and empirical results of the creative industries’ development on economic performance in the ASEAN countries before and during the COVID-19 pandemic.
This study aims to explain the influence of variable foreign debt, foreign investment, domestic investment and inflation on Indonesia's economic growth. Researchers observed research variables in the period 1994-2018 with variables of economic growth as dependent variables. In this study, researchers used cross-section data processed by the Error Correction Model (ECM) method. Based on the results of the ECM method, research researchers can explain the influence of variables on a holistic scale in the long and short term. The results of the study explain that in the long run, economic growth can be positively affected by foreign debt significantly. But on the other hand, in the short term, the results of research show that domestic investment and foreign debt both have a significant positive influence on economic growth. From these results, there are differences in the influence of independent variables in each time period. Although there are differences in the influence of independent variables on each time period, but researchers concluded that from the results of processing data variables foreign debt is equally a significant positive effect on national economic growth.
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