Islamic Financial Development and Economic Growth in Nigeria: A Bounds Testing Approach

Sabiu, Tasiu Tijjani; Abduh, Muhammad

doi:10.21098/jimf.v6i3.1191

Cited by 10 publications

(15 citation statements)

References 34 publications

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“…Majid and Kassim (2015), Abduh and Chowdhury (2012), Abduh and Omar (2012), Furqani and Mulyany (2009), Kassim (2016), Lebdaoui and Wild (2016), Mohd. Yusof and Bahlous (2013), Sabiu and Abduh (2020) as well as Zarrouk et al, ( 2017), but not supported with the findings Hachicha and Ben Amar, (2015) as well as Goaied and Sassi (2010). While JII as an indicator of the Islamic capital market does not drive significant on economic growth, it is in line with findings Carp, (2012) confirming that stock capitalization has no impact on the Rumanian economy.…”

Section: Estimates Of Long-run Relationshipmentioning

confidence: 78%

Can Islamic Finance Drives Economic Growth ? : Empirical Evidence From Indonesia

Trianto

Masrizal

Sabiu³

2021

At-tijaroh

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The purpose of this paper is to analyze the contribution of Islamic finance to Indonesian economic growth in view Global Islamic Finance Report which places Indonesia as number 1 globally in terms of Islamic Finance Country Index for the year 2019. Using quarterly dataset (2013:1-2018:4), this paper study employs ARDL framework and bounds testing approach to co-integration to investigate the influence of Islamic finance on Indonesian economic growth. The results show that in the long run Islamic finance is positive and significantly correlated with economic growth of Indonesia. The result obtained from Error correction model reveal a positive and significant long run causal effect of Islamic finance on Indonesian's economic growth. However, Indonesian Islamic capital market is found not to have a significant long run causal effect on the country's economic growth. Bearing in mind this important contribution need sustainable efforts to expand the industry and its legal framework in view of the industry target where Islamic business units will become Islamic commercial banks by the year 2023.

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Section: Estimates Of Long-run Relationshipmentioning

confidence: 78%

Can Islamic Finance Drives Economic Growth ? : Empirical Evidence From Indonesia

Trianto

Masrizal

Sabiu³

2021

At-tijaroh

Self Cite

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“…Customers’ deposits are taken on a profit and loss basis, which are then invested in different permissible businesses. Return from those businesses is shared with the depositors (Sabiu and Abduh, 2020; Hassan and Rashid, 2017; Naughton and Naughton, 2000). Conventional banks earn from the banking spread while IBs cannot earn through the spread.…”

Section: Literature Reviewmentioning

confidence: 99%

The role of knowledge diffusion in evolving governance principles for Islamic banking

Malik

Ullah

Jan

et al. 2021

IMEFM

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Purpose This study aims to describe the role of knowledge diffusion in evolving governance principles for Islamic banking. Design/methodology/approach This study develops a discursive theoretical debate using the discourse analysis method on the Sharīʿah principles related to interest (Riba), excessive uncertainty (Gharrar) and profit and loss sharing and their convergence with the conventional banking principles of profitability, solvency and liquidity. Findings The study proposes a novel framework that describes how knowledge diffusion bridge-up the Sharīʿah and banking principles in terms of integration of banking principles by Sharīʿah scholars, integration of Sharīʿah principles by managers and the resultant, emergent principles for the governance of Islamic banking. Practical implications The proposed framework can inform professionals on how knowledge of banking practices and Sharīʿah can help them in governing Islamic banking. The Board of Directors may adopt a holistic approach for encouraging enhanced interactions between Sharīʿah scholars and managers. Such interaction may be increasing harmony, reducing conflicts and better coordination resulting in Sharīʿah-compliant and market wise viable products and services, thus increasing banking profitability. Originality/value This is the first study, which acknowledges and illustrates the role of the knowledge diffusion process in evolving governance principles for Islamic banks. This paper contributes to the theory of corporate governance by using the knowledge, aptitude and practice theory lens to examine conceptually how Islamic banking governance principles emerged through the knowledge diffusion process.

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“…According to Khalifa Al-Yousif (2002), although this hypothesis has been discussed in several empirical studies, it cannot be always supported across developing and developed economies due to the variances in financial development that are determined by economic policies and organizations. Additionally, concerning the Islamic securities-economic growth relationship, it was not widely validated based on a mutually causal relationship; only a few empirical studies like Muharam et al (2019) and Sabiu and Abduh (2020) support this hypothesis. Islamic securities (s .…”

Section: Introductionmentioning

confidence: 99%

Islamic securities (ṣukūk) and economic growth: New empirical investigation from Southeast Asia using non-parametric analysis of MCMC panel quantile regression

Ledhem¹,

Mékidiche²

2021

IES

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PurposeThis paper aims to investigate empirically whether Islamic securities enhance economic growth in the Southeast Asian region based on the endogenous growth theory using the non-parametric analysis.Design/methodology/approachThis paper applies panel quantile regression with Markov chain Monte Carlo optimization as an optimal non-parametric approach to investigate the effect of Islamic securities on economic growth starting from 2013Q4 to 2019Q4 in Southeast Asia. Total issued Islamic securities holdings are employed as a measure for Islamic securities, while the gross domestic product is employed as a proxy for economic growth. The sample includes all working Islamic financial foundations in the top progressive Islamic securities markets' countries of Southeast Asia (Malaysia, Indonesia and Brunei Darussalam).FindingsThe findings confirm that the increase of issuing Islamic securities in Islamic capital markets of Southeast Asia is increasing the levels of economic growth, reflecting the weighty role of the Islamic capital market development as an active contributor to economic growth.Practical implicationsThis research would fill the literature gap by exploring Islamic securities–economic growth nexus in Southeast Asia using a robust non-parametric approach based on the endogenous growth theory for better estimation results. The findings of this review serve as a roadmap for financial analysts, policymakers and decision makers to stimulate the Islamic securities markets as another source of finance which can promote the economic growth.Originality/valueThis research is the first that investigates empirically the Islamic securities–economic growth nexus in Southeast Asia using a new empirical investigation built on the non-parametric analysis and outlined within the theoretical context of the endogenous growth model to gain robust evidence about this nexus.

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Islamic Financial Development and Economic Growth in Nigeria: A Bounds Testing Approach

Cited by 10 publications

References 34 publications

Can Islamic Finance Drives Economic Growth ? : Empirical Evidence From Indonesia

Can Islamic Finance Drives Economic Growth ? : Empirical Evidence From Indonesia

The role of knowledge diffusion in evolving governance principles for Islamic banking

Islamic securities (ṣukūk) and economic growth: New empirical investigation from Southeast Asia using non-parametric analysis of MCMC panel quantile regression

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