A Dynamic Panel Data Analysis for Islamic Finance and Economic Growth
Tarek Sadraoui,
Hanen Hleli
Issue:
Volume 3, Issue 5-2, September 2015
Pages:
1-6
Received:
9 April 2015
Accepted:
10 April 2015
Published:
21 August 2015
DOI:
10.11648/j.ijefm.s.2015030502.11
Downloads:
Views:
Abstract: This paper examines the dynamic interactions between Islamic Finance and economic growth by employing panel data econometrics, the Cointegration test and Unit root tests to see whether the financial system influences growth and growth transforms the operation of the financials system in the long-run. We use panel data of total Islamic bank financing and real GDP per capita, fixed investment, and other variables to represent real economic sectors. We found that in the short-run only fixed investment that granger cause Islamic bank where as in the long-run, there is evidence of a bidirectional relationship between Islamic Finance and fixed investment and there is evidence to support demand following hypothesis of GDP and Islamic Finance, where increase in GDP causes Islamic banking
Abstract: This paper examines the dynamic interactions between Islamic Finance and economic growth by employing panel data econometrics, the Cointegration test and Unit root tests to see whether the financial system influences growth and growth transforms the operation of the financials system in the long-run. We use panel data of total Islamic bank financin...
Show More
Takaful (Islamic Insurance): When We Started and Where We are Now
Syed Ahmed Salman,
Hafiz Majdi Ab. Rashid,
Sheila Nu Nu Htay
Issue:
Volume 3, Issue 5-2, September 2015
Pages:
7-15
Received:
28 April 2015
Accepted:
3 May 2015
Published:
21 August 2015
DOI:
10.11648/j.ijefm.s.2015030502.12
Downloads:
Views:
Abstract: The idea and practice of Takaful is not new as it was practiced during the time of the Prophet Muhammad (PBUH) by its adoption of the concept of Aqilah. Due to the complex nature of business activities and evolving human needs, Takaful is now fully commercialised and is an important part of the financial markets. Since it is important in our daily life, we believe that it is necessary to highlight when and how Takaful started and how it has developed. By doing so, we will know that the practice of Takaful is inherited from the Prophet (PBUH) and we will better appreciate the contributions of Muslim scholars to revitalize this industry. The discussion of this paper focuses on the historical development of Takaful, its available products, models, and regulatory framework. The practice of insurance was officially prohibited in 1976. Since then, Takaful has been introduced as Shari’ah compliant insurance product. Currently, there are 174 Takaful operators in the key Takaful markets and a variety of Takaful products are available to cater the market need. To achieve the sustainable development of the Takaful industry in the conventional world, Shari’ah scholars have developed several Takaful models. In addition, international organisations such as the Islamic Financial Services Board and the Accounting and Auditing Organisation for Islamic Financial Institutions are supporting the industry by providing guidelines. This paper acknowledges that the Takaful industry is one of the fastest growing financial industries and current loopholes can be improved upon jointly by the industrial players, Shari’ah advisors and internal organisations
Abstract: The idea and practice of Takaful is not new as it was practiced during the time of the Prophet Muhammad (PBUH) by its adoption of the concept of Aqilah. Due to the complex nature of business activities and evolving human needs, Takaful is now fully commercialised and is an important part of the financial markets. Since it is important in our daily ...
Show More
