Islamicity and Global Competitiveness: A Cross-Nations Path Analysis

Abstract

This paper analysis the impact, direct and indirect impacts, of Islamicity on Global competitiveness, with Human development as moderator variable. Cross-section data on Islamicity index, Human development index and Global competitiveness index were collected from 123 countries and employed in a path analysis model. The results show that Islamicity had a positive and significant direct impact on global competitiveness. Islamicity had also positive and significant direct impact on human development. These direct impacts were statistically significant. Furthermore, human development had a positive and significant direct impact on the global competitiveness. Finally, Islamicity had a positive and significant indirect impact on the global competitiveness, through human development. It is suggested that Islamic teaching be implemented in daily life in order to maintain competitiveness globally.

Does Islamicity Affect Economic Growth? Evidence From Oic, High, Middle, and Low-Income Countries

“…His study revealed that Islamicity had a favorable and significant direct impact on global competitiveness. 19 Moreover, Muchdie investigated the linkage and impact of Islamicity on happiness, with human development and global competitiveness as moderating variables. The study displayed a robust relationship among the stipulated variables by using a path analysis model on the data of 123 countries.…”