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SDGs, Islamic banks and economic growth nexus: a case study of Malaysia

Purpose – The purpose of this paper is to examine the short-run and long-run relationships between Islamic banks’ financing that are aligned with the SDGs and economic growth in Malaysia. Design/methodology/approach – Utilizing quarterly data set for the duration of 2014 to 2018, this study applies...

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Main Authors: Abdul-Wahab, Abdul-Hamid, Abd. Aziz, Hassanuddeen
Format: Conference or Workshop Item
Language:English
Published: 2022
Subjects:
BPH72 Economic development. Growth. Sustainable development. Sustainability
Online Access:http://irep.iium.edu.my/101640/1/SDGs%2C%20Islamic%20Banks%20and%20Economic%20Growth%20Nexus.pdf
http://irep.iium.edu.my/101640/
https://www.un.org/en/academic-impact/1st-international-academic-conference-sustainable-development-goals#:~:text=Utah%20Valley%20University%2C%20a%20UNAI,campus%205%20%2D7%20October%202022
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spelling my.iium.irep.1016402022-12-21T05:21:05Z http://irep.iium.edu.my/101640/ SDGs, Islamic banks and economic growth nexus: a case study of Malaysia Abdul-Wahab, Abdul-Hamid Abd. Aziz, Hassanuddeen BPH72 Economic development. Growth. Sustainable development. Sustainability Purpose – The purpose of this paper is to examine the short-run and long-run relationships between Islamic banks’ financing that are aligned with the SDGs and economic growth in Malaysia. Design/methodology/approach – Utilizing quarterly data set for the duration of 2014 to 2018, this study applies the bound testing approach to cointegration and error correction model to analyse the data based on autoregressive distributed lag (ARDL) ARDL approach. Findings – The results suggest that Islamic banks’ financing in line with SDG2, SDG3, SDG4 and SDG11 have significant impact on economic growth in the short-run and long-run. However, while SDG2, SDG3 and SDG4 have negative impact on economic growth, SDG11 has a positive impact on economic growth. Research limitations/implications – Thoughtful policies to encourage Islamic banks’ financing in line with the SDGs while coping with slow economic growth will be imperative in achieving the SDGs in the long-run. This matters because with just eight years to go until the SDGs deadline of 2030, policymakers and Islamic banking regulators need to act fast by formulating strategies that will shift emphasis on GDP growth to financing the SDGs. Originality/value of the paper – This paper is a pinioning effort in the application of the ARDL approach to investigate the nexus between the SDGs, Islamic banks and economic growth. 2022 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/101640/1/SDGs%2C%20Islamic%20Banks%20and%20Economic%20Growth%20Nexus.pdf Abdul-Wahab, Abdul-Hamid and Abd. Aziz, Hassanuddeen (2022) SDGs, Islamic banks and economic growth nexus: a case study of Malaysia. In: International Academic Conference on the Sustainable Development Goals "Why it Matters", 7th October 2022, Orem, Utah, USA. (Unpublished) https://www.un.org/en/academic-impact/1st-international-academic-conference-sustainable-development-goals#:~:text=Utah%20Valley%20University%2C%20a%20UNAI,campus%205%20%2D7%20October%202022
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic BPH72 Economic development. Growth. Sustainable development. Sustainability
spellingShingle BPH72 Economic development. Growth. Sustainable development. Sustainability
Abdul-Wahab, Abdul-Hamid
Abd. Aziz, Hassanuddeen
SDGs, Islamic banks and economic growth nexus: a case study of Malaysia
description Purpose – The purpose of this paper is to examine the short-run and long-run relationships between Islamic banks’ financing that are aligned with the SDGs and economic growth in Malaysia. Design/methodology/approach – Utilizing quarterly data set for the duration of 2014 to 2018, this study applies the bound testing approach to cointegration and error correction model to analyse the data based on autoregressive distributed lag (ARDL) ARDL approach. Findings – The results suggest that Islamic banks’ financing in line with SDG2, SDG3, SDG4 and SDG11 have significant impact on economic growth in the short-run and long-run. However, while SDG2, SDG3 and SDG4 have negative impact on economic growth, SDG11 has a positive impact on economic growth. Research limitations/implications – Thoughtful policies to encourage Islamic banks’ financing in line with the SDGs while coping with slow economic growth will be imperative in achieving the SDGs in the long-run. This matters because with just eight years to go until the SDGs deadline of 2030, policymakers and Islamic banking regulators need to act fast by formulating strategies that will shift emphasis on GDP growth to financing the SDGs. Originality/value of the paper – This paper is a pinioning effort in the application of the ARDL approach to investigate the nexus between the SDGs, Islamic banks and economic growth.
format Conference or Workshop Item
author Abdul-Wahab, Abdul-Hamid
Abd. Aziz, Hassanuddeen
author_facet Abdul-Wahab, Abdul-Hamid
Abd. Aziz, Hassanuddeen
author_sort Abdul-Wahab, Abdul-Hamid
title SDGs, Islamic banks and economic growth nexus: a case study of Malaysia
title_short SDGs, Islamic banks and economic growth nexus: a case study of Malaysia
title_full SDGs, Islamic banks and economic growth nexus: a case study of Malaysia
title_fullStr SDGs, Islamic banks and economic growth nexus: a case study of Malaysia
title_full_unstemmed SDGs, Islamic banks and economic growth nexus: a case study of Malaysia
title_sort sdgs, islamic banks and economic growth nexus: a case study of malaysia
publishDate 2022
url http://irep.iium.edu.my/101640/1/SDGs%2C%20Islamic%20Banks%20and%20Economic%20Growth%20Nexus.pdf
http://irep.iium.edu.my/101640/
https://www.un.org/en/academic-impact/1st-international-academic-conference-sustainable-development-goals#:~:text=Utah%20Valley%20University%2C%20a%20UNAI,campus%205%20%2D7%20October%202022
_version_ 1753788171517165568
score 13.211869

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