An Empirical Analysis of Islamic Banking (IBs) Contribution to Indonesia’s Inclusive Growth

Ibrahim, Muhammad Yusuf; Indra, Indra

doi:10.18196/ijief.v4i0.10342

Cited by 2 publications

(3 citation statements)

References 24 publications

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“…So that it will lead to flexibility in the different variable lags in endogenous and exogenous variables. The model can also analyze the effect of exogenous variables on each lag in different time intervals Ibrahim & Indra (2021).…”

Section: Autoregressive Distributed Lag (Ardl)mentioning

confidence: 99%

“…However, traditional ARDL is considered no longer effective considering the long-term relationship analysis between variable I(1) and its basic premise, thus proving that with variable I(1), the traditional ARDL approach can no longer be applied. So in this study, the ARDL method applied is the ARDL model as developed in Varquez et al (2012) and also applied in Ibrahim & Indra (2021).…”

Section: Autoregressive Distributed Lag (Ardl)mentioning

confidence: 99%

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The Roles of Export of Coffee Commodity and Macroeconomics Factors on Unemployment in Indonesia

Hendrasto,

Ibrahim,

Novianti

2023

JSEA

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Coffee as the second largest agricultural commodity export has contributed to the economies of various countries, including Indonesia. In addition to looking at the role of coffee commodity exports, an analysis of macroeconomic factors' impact on Indonesia's unemployment rate is also analyzed. Because it is known that the unemployment rate is not only caused by one sector but some things influence it, including macroeconomic factors. This study analyzes the role of coffee commodity exports and macroeconomic factors, including GDP, inflation, and interest rates, on Indonesia's unemployment rate. The data used in this study is interpolated secondary data for the period 2000 to 2021. The estimation method used in this study is Robust Least Square (ROBUSTLS) which will then be estimated again using the Autoregressive Distributed Lag (ARDL) method as a robustness test. The estimation results using the ROBUSTLS method prove that coffee commodity exports and macroeconomic factors significantly affect Indonesia's unemployment rate in aggregate. This form of influence is negative for coffee commodity exports (ExpCof), gross domestic product (GDP), and interest rate (IR). While inflation (Inf) has a positive impact on the unemployment rate (Ump). These findings are reinforced by the estimation results using the ARDL method with the result that ExpCof, GDP, and Inf have a significant relationship to Ump, while Inf is not as significant as the findings from the estimation results using the ROBUSTLS method.

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Section: Autoregressive Distributed Lag (Ardl)mentioning

confidence: 99%

Section: Autoregressive Distributed Lag (Ardl)mentioning

confidence: 99%

The Roles of Export of Coffee Commodity and Macroeconomics Factors on Unemployment in Indonesia

Hendrasto,

Ibrahim,

Novianti

2023

JSEA

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“…Though there was positive relationship between indicators of Islamic finance and economic growth. Ibrahim and Indra (2021) submitted that total financing of Islamic banks were positively related with economic growth in case of Indonesia. Ellahi et al (2010) analyze the impact of Islamic modes of finance on the growth of SMEs and IBs.…”

Section: Empirical Studiesmentioning

confidence: 99%

The contribution of Shariah-Compliant products to SDGs attending through the pace of economic growth: an empirical evidence from Pakistan

Siddique

Haq

Rahim

2022

IMEFM

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Purpose Since 2004, Pakistan carried the banking sector under the umbrella of the Islamic financial paradigm, consequently the Islamic Banking Industry (IBI) placed an upright position in the banking and financial market of Pakistan. In this context, this study aims to analyze the effect of Shariah-compliant products of the IBI on the pace of economic growth in Pakistan. Design/methodology/approach The data set covered 13 Pakistani Islamic banks comprising four full-fledged Islamic banks and 9 conventional banks holdings standalone Islamic Branches, for the period 2004–2019. Considering nature of the empirical model and data set, the estimation was carried out with the Pooled Ordinary least squares estimation technique. Findings The findings of the study reveal that Shariah-compliant products have a positive effect on the pace of economic growth. This indication is based on the fact that five out of six Shariah-compliant products hold positive signs and are statistically significant. In addition, the empirical evidence shows that at large conventional financial sector signifies its role in the Shariah-compliant products and pace of economic growth nexus. Among the control variables, foreign direct investment, human capital, trade openness, inflation and private credit pose negative, whereas money supply and stock market capitalization have a positive effect on the pace of economic growth in Pakistan. Findings of the study points towards the fact that Shariah-compliant financing has great potential to enhance the economic growth of Pakistan therefore to touch the sustainable development goals (SDGs). Practical implications Having played a significant role in the growth process, Islamic bankers should portray a positive image of their industry to the government authorities. The government should design a public policy to encourage Islamic modes of finance at a macro level to increase the pace of economic growth and therefore SDGs realization. Originality/value Findings of the study present new insight into the application of Shariah-compliant products of IBI toward the realization of SDGs in case of Pakistan.

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An Empirical Analysis of Islamic Banking (IBs) Contribution to Indonesia’s Inclusive Growth

Cited by 2 publications

References 24 publications

The Roles of Export of Coffee Commodity and Macroeconomics Factors on Unemployment in Indonesia

The Roles of Export of Coffee Commodity and Macroeconomics Factors on Unemployment in Indonesia

The contribution of Shariah-Compliant products to SDGs attending through the pace of economic growth: an empirical evidence from Pakistan

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