Revisiting the Contribution of Islamic Banks’ Financing to Economic Growth: The Indonesian Experience
The contribution of Islamic banking towards economic growth remains debatable amongst academicians and practitioners. This study investigates the relationship between Islamic banks’ financing and economic growth in Indonesia which is the largest Muslim population country. This study adopts Autoregre...
Saved in:
Main Authors: | , , , |
---|---|
Format: | Article PeerReviewed |
Language: | English Indonesian Indonesian |
Published: |
Fakultas Ekonomi dan Bisnis Islam, IAIN Surakarta
2021
|
Subjects: | |
Online Access: | https://repository.unair.ac.id/116324/1/BayuArieF_Karil301.pdf https://repository.unair.ac.id/116324/2/BayuArieF_PeerReview301.pdf https://repository.unair.ac.id/116324/4/BayuArieF_Kesesuaian-Bid-Ilmu301.pdf https://repository.unair.ac.id/116324/ http://shirkah.or.id/new-ojs/index.php/home/article/view/383 http://dx.doi.org/10.22515/shirkah.v6i1.383 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Institution: | Universitas Airlangga |
Language: | English Indonesian Indonesian |
id |
id-langga.116324 |
---|---|
record_format |
dspace |
spelling |
id-langga.1163242022-10-21T13:49:26Z https://repository.unair.ac.id/116324/ Revisiting the Contribution of Islamic Banks’ Financing to Economic Growth: The Indonesian Experience Indri Supriani, - Bayu Arie Fianto, - Najim Nur Fauziah, - Ryan Rahmah Maulayati, - H Social Sciences HG Finance HG1501-3550 Banking The contribution of Islamic banking towards economic growth remains debatable amongst academicians and practitioners. This study investigates the relationship between Islamic banks’ financing and economic growth in Indonesia which is the largest Muslim population country. This study adopts Autoregressive-Distributed Lag (ARDL) and utilizes time-series quarterly data from 2011Q1 to 2019Q3. The study uses four predictors: financing to deposit ratio, gross capital fixed formation, inflation, and trade openness. The results from the auto-regressive distributed lag model indicate that, in the long-run, Islamic banks' financing has a significant impact on the Indonesian economy. However, in the short-run, financing does not make a substantial contribution to Indonesian economic growth. The study’s key implication is that financing by Islamic banks still makes a limited contribution to economic growth in Indonesia. This study enhances the literature review, specifically on evaluating the contribution of Islamic banks towards economic growth. Numerous existing studies on this topic covering the crisis period data, which might suffer from data bias. Therefore, this study addresses this topic, excluding the global financial crises period such as 1998, 2008, and 2020, to demonstrate Islamic banks' evident contribution to Indonesian economic growth. Fakultas Ekonomi dan Bisnis Islam, IAIN Surakarta 2021 Article PeerReviewed text en https://repository.unair.ac.id/116324/1/BayuArieF_Karil301.pdf text id https://repository.unair.ac.id/116324/2/BayuArieF_PeerReview301.pdf text id https://repository.unair.ac.id/116324/4/BayuArieF_Kesesuaian-Bid-Ilmu301.pdf Indri Supriani, - and Bayu Arie Fianto, - and Najim Nur Fauziah, - and Ryan Rahmah Maulayati, - (2021) Revisiting the Contribution of Islamic Banks’ Financing to Economic Growth: The Indonesian Experience. Shirkah: Journal of Economics and Business, 6 (1). pp. 18-37. ISSN 2503-4235 eISSN: 2503-4243 http://shirkah.or.id/new-ojs/index.php/home/article/view/383 http://dx.doi.org/10.22515/shirkah.v6i1.383 |
institution |
Universitas Airlangga |
building |
Universitas Airlangga Library |
continent |
Asia |
country |
Indonesia Indonesia |
content_provider |
Universitas Airlangga Library |
collection |
UNAIR Repository |
language |
English Indonesian Indonesian |
topic |
H Social Sciences HG Finance HG1501-3550 Banking |
spellingShingle |
H Social Sciences HG Finance HG1501-3550 Banking Indri Supriani, - Bayu Arie Fianto, - Najim Nur Fauziah, - Ryan Rahmah Maulayati, - Revisiting the Contribution of Islamic Banks’ Financing to Economic Growth: The Indonesian Experience |
description |
The contribution of Islamic banking towards economic growth remains debatable amongst academicians and practitioners. This study investigates the relationship between Islamic banks’ financing and economic growth in Indonesia which is the largest Muslim population country. This study adopts Autoregressive-Distributed Lag (ARDL) and utilizes time-series quarterly data from 2011Q1 to 2019Q3. The study uses four predictors: financing to deposit ratio, gross capital fixed formation, inflation, and trade openness. The results from the auto-regressive distributed lag model indicate that, in the long-run, Islamic banks' financing has a significant impact on the Indonesian economy. However, in the short-run, financing does not make a substantial contribution to Indonesian economic growth. The study’s key implication is that financing by Islamic banks still makes a limited contribution to economic growth in Indonesia. This study enhances the literature review, specifically on evaluating the contribution of Islamic banks towards economic growth. Numerous existing studies on this topic covering the crisis period data, which might suffer from data bias. Therefore, this study addresses this topic, excluding the global financial crises period such as 1998, 2008, and 2020, to demonstrate Islamic banks' evident contribution to Indonesian economic growth. |
format |
Article PeerReviewed |
author |
Indri Supriani, - Bayu Arie Fianto, - Najim Nur Fauziah, - Ryan Rahmah Maulayati, - |
author_facet |
Indri Supriani, - Bayu Arie Fianto, - Najim Nur Fauziah, - Ryan Rahmah Maulayati, - |
author_sort |
Indri Supriani, - |
title |
Revisiting the Contribution of Islamic Banks’ Financing to Economic Growth: The Indonesian Experience |
title_short |
Revisiting the Contribution of Islamic Banks’ Financing to Economic Growth: The Indonesian Experience |
title_full |
Revisiting the Contribution of Islamic Banks’ Financing to Economic Growth: The Indonesian Experience |
title_fullStr |
Revisiting the Contribution of Islamic Banks’ Financing to Economic Growth: The Indonesian Experience |
title_full_unstemmed |
Revisiting the Contribution of Islamic Banks’ Financing to Economic Growth: The Indonesian Experience |
title_sort |
revisiting the contribution of islamic banks’ financing to economic growth: the indonesian experience |
publisher |
Fakultas Ekonomi dan Bisnis Islam, IAIN Surakarta |
publishDate |
2021 |
url |
https://repository.unair.ac.id/116324/1/BayuArieF_Karil301.pdf https://repository.unair.ac.id/116324/2/BayuArieF_PeerReview301.pdf https://repository.unair.ac.id/116324/4/BayuArieF_Kesesuaian-Bid-Ilmu301.pdf https://repository.unair.ac.id/116324/ http://shirkah.or.id/new-ojs/index.php/home/article/view/383 http://dx.doi.org/10.22515/shirkah.v6i1.383 |
_version_ |
1748192760973754368 |