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The impact of Islamic finance on economic growth and income distribution: a bootstrap rolling windows (BRW) approach / Noor Zahirah Mohd Sidek

This paper revisits existing literature on how financial development promotes growth and income distribution focusing on the role of Islamic finance in Malaysia. The main objective of this paper is to investigate the causal nexus between Islamic finance and growth using a bootstrap causality test ap...

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Main Author: Mohd Sidek, Noor Zahirah
Format: Book Section
Language:English
Published: Faculty of Business & Management, Universiti Teknologi MARA (UiTM) Cawangan Kedah 2018
Subjects:
HG Finance
Banking
Online Access:http://ir.uitm.edu.my/id/eprint/36732/1/36732.pdf
http://ir.uitm.edu.my/id/eprint/36732/
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spelling my.uitm.ir.367322020-12-09T10:21:54Z http://ir.uitm.edu.my/id/eprint/36732/ The impact of Islamic finance on economic growth and income distribution: a bootstrap rolling windows (BRW) approach / Noor Zahirah Mohd Sidek Mohd Sidek, Noor Zahirah HG Finance Banking This paper revisits existing literature on how financial development promotes growth and income distribution focusing on the role of Islamic finance in Malaysia. The main objective of this paper is to investigate the causal nexus between Islamic finance and growth using a bootstrap causality test applied to both full sample and rolling window sub-samples. BRW allows time-varying causal links between Islamic finance and growth, which is the novel contribution of this paper. The trickle-down effect of economic growth is examined via the same method using Islamic finance and income distribution. Islamic finance is represented by Islamic banking assets, loans by Islamic banks and sukuk issuance from 1990Q1: 2017Q4. Economic growth is captured by GDP per capita, GDP and GDP growth whilst income distribution is captured using data income inequality database from WIID. Preliminary results indicate evidence that Islamic finance has spurred financial inclusion which transpires in the reduction of income inequality over the period of study. The recent introduction of value-based intermediation (VBI) by Bank Negara Malaysia in 2017 is the way forward to further develop the role of Islamic finance as a social tool to reduce income inequality. Faculty of Business & Management, Universiti Teknologi MARA (UiTM) Cawangan Kedah 2018 Book Section NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/36732/1/36732.pdf Mohd Sidek, Noor Zahirah (2018) The impact of Islamic finance on economic growth and income distribution: a bootstrap rolling windows (BRW) approach / Noor Zahirah Mohd Sidek. In: International Business & Management Academic Colloquium 2018. Faculty of Business & Management, Universiti Teknologi MARA (UiTM) Cawangan Kedah, Merbok, Kedah, p. 23. ISBN 9789670314563
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic HG Finance
Banking
spellingShingle HG Finance
Banking
Mohd Sidek, Noor Zahirah
The impact of Islamic finance on economic growth and income distribution: a bootstrap rolling windows (BRW) approach / Noor Zahirah Mohd Sidek
description This paper revisits existing literature on how financial development promotes growth and income distribution focusing on the role of Islamic finance in Malaysia. The main objective of this paper is to investigate the causal nexus between Islamic finance and growth using a bootstrap causality test applied to both full sample and rolling window sub-samples. BRW allows time-varying causal links between Islamic finance and growth, which is the novel contribution of this paper. The trickle-down effect of economic growth is examined via the same method using Islamic finance and income distribution. Islamic finance is represented by Islamic banking assets, loans by Islamic banks and sukuk issuance from 1990Q1: 2017Q4. Economic growth is captured by GDP per capita, GDP and GDP growth whilst income distribution is captured using data income inequality database from WIID. Preliminary results indicate evidence that Islamic finance has spurred financial inclusion which transpires in the reduction of income inequality over the period of study. The recent introduction of value-based intermediation (VBI) by Bank Negara Malaysia in 2017 is the way forward to further develop the role of Islamic finance as a social tool to reduce income inequality.
format Book Section
author Mohd Sidek, Noor Zahirah
author_facet Mohd Sidek, Noor Zahirah
author_sort Mohd Sidek, Noor Zahirah
title The impact of Islamic finance on economic growth and income distribution: a bootstrap rolling windows (BRW) approach / Noor Zahirah Mohd Sidek
title_short The impact of Islamic finance on economic growth and income distribution: a bootstrap rolling windows (BRW) approach / Noor Zahirah Mohd Sidek
title_full The impact of Islamic finance on economic growth and income distribution: a bootstrap rolling windows (BRW) approach / Noor Zahirah Mohd Sidek
title_fullStr The impact of Islamic finance on economic growth and income distribution: a bootstrap rolling windows (BRW) approach / Noor Zahirah Mohd Sidek
title_full_unstemmed The impact of Islamic finance on economic growth and income distribution: a bootstrap rolling windows (BRW) approach / Noor Zahirah Mohd Sidek
title_sort impact of islamic finance on economic growth and income distribution: a bootstrap rolling windows (brw) approach / noor zahirah mohd sidek
publisher Faculty of Business & Management, Universiti Teknologi MARA (UiTM) Cawangan Kedah
publishDate 2018
url http://ir.uitm.edu.my/id/eprint/36732/1/36732.pdf
http://ir.uitm.edu.my/id/eprint/36732/
_version_ 1687396663412391936
score 13.211869

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