Effects of Islamic Banking on Employment

Abstract

Islamic Banking (IB) holds the potential of creating positive impacts upon the economy thanks to its governing principles. An extension of this potential is that the employment should be positively affected by Islamic banks. This study comparatively investigates the relationship between Islamic and private commercial banking loan and sectorial employment in Turkish economy through Granger causality method. The loans offered by IBs affect employment in manufacturing and construction sectors whereas such an impact is not identified for others. Therefore, in sectors with the exception of these two, there is no finding suggesting that IBs have positive impacts in respect to employment on real economy.

A Conceptual Framework for Adopting Islamic Banking and Finance in Libya

“…There is a prohibition in Sharia against either receiving or giving interest. It is also forbidden to put money into businesses that sell items or provide services that are in conflict with Islamic principles, such as consuming alcoholic beverages, eating pork, or smoking cigarettes, for example (Ergeç & Kaytancı, 2017). According to the findings of the Structural Equation Modelling (SEM) analysis carried out by Jaffar and Musa (2016), each of the five important beliefs or determinants of attitude that were looked at is statistically significant.…”

Growth and Development of Islamic Banking: A Global Review

“…In Turkey, the term "participation banking" is used for Islamic banking (Ergeç, 2017). Although, the share of Islamic or participation banks in Turkey is meager at around 5%, at 4.90% to be precise (Zawya, 2018) but there are strong prospects that the industry would surge in the coming years because a comprehensive law for regulating the sector shall be issued by the Turkey's banking and regulatory and supervision agency -the BDDK (Stubing, 2017).…”