Record Details

Islamic Banking Financing Effect on Growth

Islamic Banking and Finance Review

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Field Value
 
Title Islamic Banking Financing Effect on Growth
 
Creator Afia Mushtaq
Noman Arshed
Dr. Rukhsana Kalim
 
Subject Islamic banking
economic growth
Islamic banking products
 
Description The study is an attempt to explore the transmission channel through which development in Islamic banking could lead to economic growth. In order to determinethis transmission mechanism, the estimation based Vector Error Correction model (VECM) is used. This study has tested Murabaha, Ijarah and Diminishing Musharaka as proposed Islamic financial products because of their majority share in Islamic financing. This study has tested two co-integrated systems in the VECM model. The first system tests the effect of an increase in financing in Islamic banking products on the net financing of Islamic banks and the second system tests the effect of net financing of Islamic banks on economic growth. The results indicate that the financing done by Islamic banking products positively affects economic growth in Pakistan. Also, the net financing of Islamic banks is significantly based on financing in Ijarah and Murabaha. Hence, this study highlights the growth potential of Islamic banking which is gaining shares in the overall banking system of Pakistan. 
 
Publisher Department of Banking and Finance, University of Management & Technology, Lahore, Pakistan
 
Date 2018-12-12
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journals.umt.edu.pk/index.php/IBFR/article/view/173
10.32350/ibfr.2018.05.05
 
Source Islamic Banking and Finance Review; Vol 5 (2018): IBFR 1439-40H/2018; 69-87
2221-5239
2413-2977
 
Language eng
 
Relation https://journals.umt.edu.pk/index.php/IBFR/article/view/173/174
 
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