Journal article
Impact of Islamic banking development and major macroeconomic variables on economic growth for Islamic countries: Evidence from panel smooth transition models
Economic systems, v 44(1), p100739
01 Mar 2020
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This study examines the nonlinear relationship between Islamic banking development, major macroeconomic variables and economic growth in Islamic countries. Using the panel smooth transition model, the results show a positive nonlinear relationship between Islamic banking development and economic growth. Moreover, the relationship between the macroeconomic variables and economic growth is asymmetric and regime-dependent. Further, by using the dynamic panel quantile model, we show that for many cases the Islamic banking variables lead economic growth across the quantiles. More specifically, foreign direct investment, oil production and inflation have a positive impact on economic growth during the normal financial development state, while government consumption, one-lag economic growth, terms of trade and financial development have a negative impact on economic growth for this state. The human capital index, education and the rule of law have an insignificant impact, regardless of the prevailing regime. The results for the separated oil-importing and oil-exporting economies are generally consistent with the combined sample regarding the Islamic banking development variables. As for the macro variables, they have a positive and significant (insignificant) effect on EG for the oil-importing (oil-exporting) economies for almost all models.
Metrics
Details
- Title
- Impact of Islamic banking development and major macroeconomic variables on economic growth for Islamic countries: Evidence from panel smooth transition models
- Creators
- Walid Mensi - Sultan Qaboos UniversityShawkat Hammoudeh - Drexel UniversityAviral Kumar Tiwari - South Ural State UniversityKhamis Hamed Al-Yahyaee - Sultan Qaboos University
- Publication Details
- Economic systems, v 44(1), p100739
- Publisher
- Elsevier
- Number of pages
- 14
- Grant note
- RF/EPS/18/02 / Deanship of Research of Sultan Qaboos University
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000528016100003
- Scopus ID
- 2-s2.0-85076866413
- Other Identifier
- 991019167994204721
UN Sustainable Development Goals (SDGs)
This publication has contributed to the advancement of the following goals:
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Economics