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Achieving Sustainable Economic Growth: Analysis of Islamic Debt and the Islamic Equity Market.

Authors :
Saleem, Adil
Setiawan, Budi
Bárczi, Judit
Sági, Judit
Source :
Sustainability (2071-1050); Aug2021, Vol. 13 Issue 15, p8319-8319, 1p
Publication Year :
2021

Abstract

The financial sector is divided into two broad categories: equity and banking markets. The healthy functioning of these sectors plays an imperative role in any economy. This study aimed to examine the short- and long-term relationship between the Islamic financial sector (Islamic debt and Islamic equity market), and sustainable economic growth of the two economies with the largest Muslim populations. Quarterly data were collected from 2010 to 2019 for Indonesia and Pakistan. The study used autoregressive distributive lag (ARDL) and the error correction method (ECM). The results revealed that in the long run, the Islamic banking sector imparts a significant and positive effect on achieving sustainable economic growth in both countries. However, in the short run, the Islamic stock market was found to have a positive relationship with Pakistan, while the Islamic banking sector had a positive and significant relationship with economic growth in Indonesia. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
20711050
Volume :
13
Issue :
15
Database :
Complementary Index
Journal :
Sustainability (2071-1050)
Publication Type :
Academic Journal
Accession number :
151788433
Full Text :
https://doi.org/10.3390/su13158319