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Role of Macroeconomic Factors, Institutional Quality and Digitalization Towards Performance of Islamic Microfinance Institutions

Islamic microfinance is widely accepted in Muslim-majority countries as Islamic microfinance products are based on Islamic principles. However, despite the extreme need and widespread popularity of Islamic microfinance institutions (IMFI), this sector is lagging behind conventional microfinance inst...

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Main Authors: Ahmed, Mushtaq, Isa, Mohamad Yazid
Format: Article
Language:English
Published: Johar Education Society, Pakistan (JESPK) 2023
Subjects:
HB Economic Theory
Online Access:https://repo.uum.edu.my/id/eprint/31370/1/PJCSS%2017%2002%202023%20240-262.pdf
https://repo.uum.edu.my/id/eprint/31370/
https://www.econstor.eu/handle/10419/278051
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spelling my.uum.repo.313702024-10-11T17:26:27Z https://repo.uum.edu.my/id/eprint/31370/ Role of Macroeconomic Factors, Institutional Quality and Digitalization Towards Performance of Islamic Microfinance Institutions Ahmed, Mushtaq Isa, Mohamad Yazid HB Economic Theory Islamic microfinance is widely accepted in Muslim-majority countries as Islamic microfinance products are based on Islamic principles. However, despite the extreme need and widespread popularity of Islamic microfinance institutions (IMFI), this sector is lagging behind conventional microfinance institutions with scarce literature to exhibits its performance at country-levels. The success of microfinance institutions is uneven in achieving both objectives, some achieve one objective, either financial or social, while some fail to achieve any objective altogether. In this line, study uses panel data of 35 Islamic microfinance institutions of OIC countries to investigate the impact of macroeconomic, macro institutional factors and digitalization on the financial and social performance of microfinance institutions in OIC countries from 2008 to 2019. The results from Pooled-OLS and System-GMM by using STATA found that macroeconomics and country-level institutional variables have complementary and rivalrous effects in IMFIs. In addition, digitization has a significant impact on the performance of (IMFIs). The study recommends to consider country-level environment and adoption of digitalization in policy making to enhance the simultaneous development of IMFIs Johar Education Society, Pakistan (JESPK) 2023 Article PeerReviewed application/pdf en cc4_by_nc https://repo.uum.edu.my/id/eprint/31370/1/PJCSS%2017%2002%202023%20240-262.pdf Ahmed, Mushtaq and Isa, Mohamad Yazid (2023) Role of Macroeconomic Factors, Institutional Quality and Digitalization Towards Performance of Islamic Microfinance Institutions. Pakistan Journal of Commerce and Social Sciences, 17 (2). pp. 240-262. ISSN 1997-8553 https://www.econstor.eu/handle/10419/278051
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HB Economic Theory
spellingShingle HB Economic Theory
Ahmed, Mushtaq
Isa, Mohamad Yazid
Role of Macroeconomic Factors, Institutional Quality and Digitalization Towards Performance of Islamic Microfinance Institutions
description Islamic microfinance is widely accepted in Muslim-majority countries as Islamic microfinance products are based on Islamic principles. However, despite the extreme need and widespread popularity of Islamic microfinance institutions (IMFI), this sector is lagging behind conventional microfinance institutions with scarce literature to exhibits its performance at country-levels. The success of microfinance institutions is uneven in achieving both objectives, some achieve one objective, either financial or social, while some fail to achieve any objective altogether. In this line, study uses panel data of 35 Islamic microfinance institutions of OIC countries to investigate the impact of macroeconomic, macro institutional factors and digitalization on the financial and social performance of microfinance institutions in OIC countries from 2008 to 2019. The results from Pooled-OLS and System-GMM by using STATA found that macroeconomics and country-level institutional variables have complementary and rivalrous effects in IMFIs. In addition, digitization has a significant impact on the performance of (IMFIs). The study recommends to consider country-level environment and adoption of digitalization in policy making to enhance the simultaneous development of IMFIs
format Article
author Ahmed, Mushtaq
Isa, Mohamad Yazid
author_facet Ahmed, Mushtaq
Isa, Mohamad Yazid
author_sort Ahmed, Mushtaq
title Role of Macroeconomic Factors, Institutional Quality and Digitalization Towards Performance of Islamic Microfinance Institutions
title_short Role of Macroeconomic Factors, Institutional Quality and Digitalization Towards Performance of Islamic Microfinance Institutions
title_full Role of Macroeconomic Factors, Institutional Quality and Digitalization Towards Performance of Islamic Microfinance Institutions
title_fullStr Role of Macroeconomic Factors, Institutional Quality and Digitalization Towards Performance of Islamic Microfinance Institutions
title_full_unstemmed Role of Macroeconomic Factors, Institutional Quality and Digitalization Towards Performance of Islamic Microfinance Institutions
title_sort role of macroeconomic factors, institutional quality and digitalization towards performance of islamic microfinance institutions
publisher Johar Education Society, Pakistan (JESPK)
publishDate 2023
url https://repo.uum.edu.my/id/eprint/31370/1/PJCSS%2017%2002%202023%20240-262.pdf
https://repo.uum.edu.my/id/eprint/31370/
https://www.econstor.eu/handle/10419/278051
_version_ 1814057291923587072
score 13.211869

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