Determinants of Economic Growth in Organization of Islamic Cooperation with Governance Index as a Moderating Variable

Ihsan, Akmal; Yogyakarta, Student Uin Sunan Kalijaga

doi:10.47191/jefms/v4-i8-16

Cited by 3 publications

(4 citation statements)

References 18 publications

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“…Economic growth has become an essential subject for the government to study because a significant increase in economic growth will be a barometer of the success of a country's development. Although this increase in economic growth does not mean everyone has to be rich, it shows that a relatively high level of communal welfare can be achieved (Ihsan, 2021).…”

Section: Economic Growthmentioning

confidence: 98%

Determinants of Poverty Rate in Eastern Indonesia

Soleman

Soleman²

2022

JIETcon

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Poverty is a global issue faced by many countries in the world, including Indonesia. The purpose of this study is to examine the level of poverty in Eastern Indonesia by measuring Islamic banking financing, economic growth, LFPR, education and health and inflation against poverty levels in Eastern Indonesia. The data source used in the form of panel data is obtained from the Central Statistics Agency (BPS) for the 2011-2021 period. Data analysis using regression panel data with Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM) approach processed with E-Views 10. The results of this study indicate that the estimated model chosen in this study is Random The Effect Model (REM) followed by LM testing shows that the results of the Islamic Banking Financing, TPAK, RLS, UHH, and Inflation variables have no significant effect in a negative direction on the poverty level. negative. This means, for example, that there are independent variables simultaneously, so that the poverty level in Eastern Indonesia is increasingly leading to change. Meanwhile, in the simultaneous test the F-Statistic prob value is 0.000000 < 0.05, which means that the six independent variables simultaneously affect the poverty level in Eastern Indonesia. And the value of Adjusted R-Square is 0.607420 which means 60% of the variables of Islamic Banking Financing, economic growth, TPAK, RLS, UHH, and Inflation in this study are able to explain the variation of economic growth variables. While the remaining 40% is explained by other variables outside the model.

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Section: Economic Growthmentioning

confidence: 98%

Determinants of Poverty Rate in Eastern Indonesia

Soleman

Soleman²

2022

JIETcon

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“…Even though these three main variables are aggregate variables used in driving economic growth in the Islamic countries of the world. (Fazira & Cahyadin, 2018;Ihsan, 2021;Suhendra, Istikomah, & Anwar, 2022; So, with these findings, the government needs to evaluate its political system to make it more effective.…”

Section: Variablesmentioning

confidence: 99%

“…FDI not only offers investable capital but also helps host countries access advanced technologies that accelerate growth productivity in developing countries. (Ihsan, 2021) Another macro variable that is the focus of this research is remittances from foreign workers to their countries of origin. Remittances are one of the aggregate variables that have a major influence on growth, especially in the Islamic countries which are known for their high remittance rates.…”

Section: Introductionmentioning

confidence: 99%

Macroeconomic Effects on Economic Growth in Muslim Countries: Political System as A Moderating Variable

Arohman,

Qoyum,

Ihsan

et al. 2023

Ekonomika Syariah

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This study seeks to explore the role of the political system in supporting the influence of macro variables on economic growth in the world's Islamic countries. Data obtained from the world bank during 2010-2021. The econometric model used in the research is the Generalized Method of Moments (GMM). The main finding is that the political system has a significant negative effect on growth. This negative effect is caused by the low value of the political index determined by world governance indicators. In addition, foreign direct investment and remittances are still the main variables in supporting economic growth in the Islamic countries of the world. In contrast, interest rates show negative effects on economic growth. Further results show that an ineffective political system is unable to strengthen the relationship between foreign direct investment, remittances, and interest rates on economic growth. These findings serve as an evaluation for the 2025 OIC internal implementation action program.AbstrakStudi ini berusaha untuk mengeksplorasi peran dari sistem politik dalam mendukung pengaruh variabel makro terhadap pertumbuhan ekonomi di negara Islam dunia. Data diperoleh dari world bank selama tahun 2010-2021. Model ekonometrika yang digunakan dalam penelitian ialah generalized method of moments (GMM). Adapun temuan utamanya ialah sistem politik berpengaruh negatif signifikan terhadap pertumbuhan. Efek negatif ini disebabkan dengan rendahnya nilai indeks politik yang ditentukan oleh world governance indicators. Selain itu, investasi asing langsung dan remitansi masih menjadi variabel utama dalam mendukung pertumbuhan ekonomi di negara-negara Islam dunia. Sebaliknya, tingkat suku bunga menunjukkan efek negatif terhadap pertumbuhan ekonomi. Hasil selanjutnya ditunjukkan bahwa sistem politik yang tidak efektif tidak mampu memperkuat hubungan antara investasi asing langsung, remitansi, dan tingkat suku bunga terhadap pertumbuhan ekonomi. Temuan ini menjadi evaluasi untuk program aksi OKI 2025 yang saat ini masih berlangsung.

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“…This is the reason why many scholars have recently paid much attention to the political stabilization variable as a third variable in their research, such as Benvenuto, Avram, Avram, & Viola (2021) in Romania and Italy, Mishra, Jain, & Manogna (2021)in India. Rehman et al (2021)in the developing world, and Ihsan (2021) in the Muslim world. The low index illustrates that governance in Muslim countries in the world is still bad so it will have a major impact on their consumption behavior.…”

Section: Figure 1 List Of Consumption Expenditures Of 10 World Islami...mentioning

confidence: 99%

Determining Factors of Consumption in Islamic Countries in The World with Political Stability as a Moderating Variable

Ihsan

2022

JIEI

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Consumption is an object of study that has a different point of view between capitalists and Islam. The concept of consumption in the capitalist emphasizes utility or satisfaction, while in Islam it emphasizes benefit. This is a polemic between the two in understanding consumption. Indeed, maximum consumption while still paying attention to the benefit is a concept that needs to be achieved. Muslim communities who are members of the world's Islamic countries should have implemented this concept, but they are still classified as consumptive. For this reason, this study aims to determine what factors are driving consumption levels in the world's Islamic countries in 2011-2020. This study uses a quantitative study with multiple linear regression method. The ordinary least square model is expected to provide an empirical description of what factors can affect consumption in Organization Islamic countries. The result provide an empirical picture that income is the main indicator as a trigger for increased consumption. In addition, the interest rate offered in investment and the exchange rate against the dollar also makes consumer behavior able to increase consumption patterns. Furthermore, the pattern of household consumption is strongly influenced by the political stability that exists in the Islamic countries of the world. In addition, this government policy can strengthen the relationship between consumption and the exchange rate to encourage higher consumption. This result is expected to be an evaluation material for the governments of Islamic countries in the world to continue to pay attention to the consumption patterns of their people so that they are not included in the consumptive group, but consume productively and still pay attention to maslahah

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Determinants of Economic Growth in Organization of Islamic Cooperation with Governance Index as a Moderating Variable

Cited by 3 publications

References 18 publications

Determinants of Poverty Rate in Eastern Indonesia

Determinants of Poverty Rate in Eastern Indonesia

Macroeconomic Effects on Economic Growth in Muslim Countries: Political System as A Moderating Variable

Determining Factors of Consumption in Islamic Countries in The World with Political Stability as a Moderating Variable

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