Is Islamic Banking Good for Growth?
By P. Imam, Kangni Kpodar. Social Science Research Network, 2015
251 citations recorded by the source corpus.
The rapid growth of Islamic banking has attracted much attention lately in the economic literature. At the same time, a mature body of the literature has shown that financial development is broadly conducive to economic growth, which raises the question as to whether a similar conclusion holds for Islamic banking. Against this backdrop, this paper investigates the relationship between Islamic banking development and economic growth in a sample of low and middle income countries, using data over the period 1990-2010. The results show that, notwithstanding its relatively small size compared to the economy and the overall size of the financial system, Islamic banking is positively associated with economic growth even after controlling for various determinants, including the level of financial depth. The results are robust across across different specifications, sample composition and time periods.
Subfields: Accounting, Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/74f08e40a8a72e8b921ec97a913dadb5f427cc20
Citations in the corpus
- Political stability and growth: An application of dynamic GMM and quantile regression (2017, unknown): “16 The dummy variable for the Oil Dependent Countries takes the value of 1when country's oil revenue to GDP is 2% or more for 19 years average i.e., from 1996 and 2014. last two decades and so Imam and Kpodar (2016) in their recent study conclude that Islamic banking promotes economic growth.”
- How profitability differs between conventional and Islamic banks: A dynamic panel data approach (2018, unknown): “…is this PLS structure contributing to the capacity of Islamic banks in absorbing external shocks as compared to their conventional counterparts (Khan and Mirakhor, 1989) and to the capacity of adding to the overall economic growth by enabling long-term funding (Chapra, 1992; Imam and Kpodar, 2015).”