Islamic Finance Development and Economic Growth: Empirical Evidence From Turkey

Jobarteh, Mustapha; Ergeç, Etem Hakan

doi:10.15238/tujise.2017.4.1.31-47

Cited by 17 publications

(10 citation statements)

References 10 publications

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“…Studies examining the effects of the development of Islamic finance on the economy are relatively limited compared to conventional finance. However, these studies are generally conclude that they affect economic growth positively (Furqani & Mulyany, 2009;Abduh & Chowdhury, 2012;Tabash & Dhankar, 2014;Imam & Kpodar, 2016;Tunay, 2016;Jawad & Christian, 2019;Asutay & Ergec, 2013;Jobarteh & Ergec, 2017, Atici, 2018.…”

Section: Literature Reviewmentioning

confidence: 99%

Relationship between Loans and Export in Turkey: Comparative Analysis of Islamic and Conventional Banks

Ergeç¹,

Kaytanci²

2021

Optimum Ekonomi Ve Yönetim Bilimleri Dergisi

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Financial flows have a potential to influence the economic activity and exports. In this study, causality relationships between both total loans and medium-long term loans and exports were investigated by the Toda-Yamamoto method for various exporting manufacturing industries in Turkey for the period 2006-2019. Although the share of funds directed to the real sector and production is low for Islamic banks, the loans supplied by Islamic banks have a stronger causal effect on exports compared to conventional banks.

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Section: Literature Reviewmentioning

confidence: 99%

Relationship between Loans and Export in Turkey: Comparative Analysis of Islamic and Conventional Banks

Ergeç¹,

Kaytanci²

2021

Optimum Ekonomi Ve Yönetim Bilimleri Dergisi

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“…Likewise, with the cooperative banking model in Germany, a pool of cooperative banks can form several regional central banks and one federal central bank and account for more than 50% of the total number of banks nationally (Jobarteh, 2017). Cooperative banks in Japan provide another exciting lesson.…”

Section: This Problem Was Further Complicated When Law Number 1 Of 20...mentioning

confidence: 99%

“…Choudhury (1982) makes profit and loss sharing (PLS) as one of the main instruments for Islamic finance application in addition to 3 other main instrument elements, namely: eliminating usury, eliminating israf (excessiveness), and zakat instruments. Therefore, Islamic economists from the beginning have proposed that PLS should ideally be applied to IFI, both on the funding and financing sides known as the two-tier mudaraba mechanism (Jobarteh, 2017). Modern Islamic economists initiated it in the early 70s to liberate the Islamic world from Western colonialism.…”

Section: Introductionmentioning

confidence: 99%

Habib Ahmed's maqāṣid sharī`ah concept on cooperative regulations in Indonesia

Zulfikar¹

2021

Ijtihad : Jurnal Wacana Hukum Islam dan Kemanusiaan

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This article discussed Habib Ahmed's maqāṣid sharī`ah concept on Islamic Financial Institutions (IFIs) contracts, regarding the dualism of cooperative regulations in Indonesia between sharia and non-sharia-based cooperatives. In initiating the NIE (New Institutional Economics) approach for IFIs, Habib Ahmed emphasized the vital role of embeddedness as a culture rooted in the knowledge system. This embeddedness is the starting point of IFIs adaptation. These informal institutions then influence the formation of formal institutions and are followed by institutional forms of organization. Finally, the transaction products are in line with the organizational form. In other words, according to Habib Ahmed, if the adaptation and transaction of the IFIs start from this stage, then the product will be entirely in line with the proper Islamic ontology and epistemology. This qualitative library research focused on the reality of cooperatives in Indonesia, assessed from Habib Ahmed's perspective. This study concluded that Indonesia's economy still does not represent the goal of its constitutional economy with a feeling of kinship and mutualistic organization, such as cooperatives. In addition, its significant economic growth, which places it in the top twenty countries (G-20) in Gross Domestic Product (GDP), is not inclusive.

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“…Empirical results also show that there exists bidirectional causality between participation banks' funds and economic growth. Jobarteh and Ergec (2017) investigate the impact of Islamic finance development on economic growth by using the ADF unit root test, cointegration and Granger causality approach over the period 2005-2015. The More recently, Koçak (2018) analyzes the impacts of Islamic finance on economic growth in Turkey covering 2005Q1-2015Q4.…”

Section: B Literature Reviewmentioning

confidence: 99%

Katılım bankaları ekonomik büyümeye katkı sağlıyor mu? Türkiye için zaman serisi analizi

Yücel

Koseoglu

2020

Bilimname

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One of the most important goals of developing nations is to achieve rapid economic growth. There is a consensus in the literature of economics that a welldeveloped financial sector will accelerate economic growth. However, few studies have examined the link between participation banks and economic growth. To contribute to the literature, this study aims to analyze the relationship between participation banks and economic growth for the case of Turkey. To reach this purpose, we established a neoclassical growth model by employing gross domestic product, total credits given by participation banks, gross fixed capital formation and the number of employed persons using time series data covering the period of 2005Q4-2020Q2. We conducted a battery of unit root tests, co-integration, and causality tests. The results reveal that there is a long run stable relationship among the variables. As for the long-run estimators, a 1% increase in gross fixed capital formation, employment and credits given by participation banks will lead to 0.715%, 0.422% and 0.021% increase in economic growth in Turkey. These findings suggest that participation banks, as well as capital and labor, have a statistically significant impact on the economic growth of Turkey. The causality test results show that there is a oneway causal relationship from participation banks' funds to economic growth both in the short and long run but not vice versa. Two important policy implications emerge from this study. Firstly, participation banks may play an essential role in bringing idle funds to the banking system in Turkey. Therefore, participation banks should be seen as complementary to conventional banks rather than a substitute. Secondly, participation banks should diversify their products by introducing new financial products and services to unleash their untapped potential.

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Islamic Finance Development and Economic Growth: Empirical Evidence From Turkey

Cited by 17 publications

References 10 publications

Relationship between Loans and Export in Turkey: Comparative Analysis of Islamic and Conventional Banks

Relationship between Loans and Export in Turkey: Comparative Analysis of Islamic and Conventional Banks

Habib Ahmed's maqāṣid sharī`ah concept on cooperative regulations in Indonesia

Katılım bankaları ekonomik büyümeye katkı sağlıyor mu? Türkiye için zaman serisi analizi

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