How Does Islamic Banking Support Economics Growth?

Abstract

Some researchers have argued that the financial system has a vital role in economic growth. Islamic banking that has existed widely in many countries is expected to have a positive role in economic growth. This study aims to examine the impact of Islamic bank financing on economic growth in QISMUT countries. To compare with other full Islamic banking systems, Iran and Sudan also included in this study. By using annual panel data (2005-2015), this paper utilizes an approach to multiple mediating analysis models. The findings demonstrate that Islamic banking financing does not significantly impact economic growth directly. However, Islamic banking financing can possibly influence economic growth indirectly through investment and consumption spending.========================================================================================================Bagaimanakah Peran Perbankan Syariah dalam Pertumbuhan Ekonomi? Beberapa peneliti berpendapat bahwa system keuangan memiliki peran penting dalam pertumbuhan ekonomi. Perbankan Islam yang telah ada secara luas di banyak negara diduga memiliki peran positif dalam pertumbuhan ekonomi. Penelitian ini bertujuan untuk menguji peengaruh pembiayaan bank Islam pada pertumbuhan ekonomi di negara QISMUT. Iran dan Sudan dimasukkan dalam objek penelitian ini sebagai pembanding penggunaan sistem keuangan Islam. Menggunakan data panel tahun 2005-2015, penelitian ini menggunakan pendekatan analisis media dengan banyak faktor. Hasil penelitian menunjukkan bahwa pembiayaan bank Islam tidak dapat mempengaruhi pertumbuhan ekonomi secara langsung. Akan tetapi, Bank Islam dapat mempengaruhi pertumbuhan ekonomi secara tidak langsung, yaitu melaui investasi dan konsumsi.

The Impact of Zakah, Islamic Financing, Sukuk and Inflation on National Economic Growth with Poverty as a Moderation Variable

“…Through productive financing channeled to entrepreneurs both UMKM and large-scale businesses. This result support the research conducted by Prastowo (2018); Mifrahi & Tohirin (2020);El Ayyubi et. al., (2018);Terminanto (2017); Ahmad (2018); which states that Islamic financing has a positive influence on economic growth.…”

“…H 2 : Islamic financing has a positive significant effect on national economic growth As with zakah, the greater the Islamic financing issued by Islamic banking institutions means that the greater the number of business sectors (companies, MSMEs, private) operating, the greater its contribution to economic growth (www.knks.go.id). As research conducted by Baehaqy (2019); Prastowo (2018); Mifrahi & Tohirin (2020);El Ayyubi et, al., (2018); Terminanto (2017); Ahmad (2018) found that Islamic financing from Islamic banking has a positive and significant impact on national economic growth in the long run. Based on those, it is hypothesised that: H 3 : sukuk has a positive significant effect on national economic growth The role of the sukuk is quite important for companies that need funds for operational costs.…”

“…On the other hand, as research conducted by Baehaqy (2019); Prastowo (2018); Mifrahi & Tohirin (2020);El Ayyubi, et. al., (2018); Terminanto (2017); Ahmad (2018) Islamic financing especially Islamic banking, has a positive and significant impact on Vol.…”

“…1 (2021) ISSN (print): 2502-3918 | ISSN (online): 2502-7824 national economic growth in the long run. While the research conducted by Mifrahi & Tohirin (2020) found that Islamic financing has a negative and significant impact on national economic growth in the long run.…”

The Effect of Non-Sharia Financial Instruments on Indonesian Economic Growth

“…The potential of the non-bank financial industry (IKNB) consists of two branches, the Islamic non-bank financial industry, and the convention. The non-bank Islamic finance industry is based on Sharia principles and the agreement does not contain at least three things that are prohibited: usury, gharar, and maysir, which have been cited as causes of instability and economic crises in various parts of the world (Atika, 2018;Mifrahi & Tohirin, 2020). Islamic non-bank financial industry also uses a risk-sharing paradigm.…”