 The effect of Islamic banks on GDP growth: Some evidence from selected MENA countriesJamel Boukhatem and Fatma Ben Moussa () Borsa Istanbul Review, 2018, vol. 18, issue 3, 231-247 Abstract: The purpose of this paper is twofold. First, it seeks to establish a consistent theoretical framework for the relationship between Islamic finance and economic growth. Second, it attempts to assess empirically the effect that Islamic banking loans had on the economic growth of 13 countries in the MENA region during the 2000–2014 period. We found strong evidence to suggest that financial system development stimulated economic growth in the selected MENA countries over the studied period. Furthermore, we found that while Islamic financial development can boost economic growth, this positive effect is hindered by underdeveloped institutional frameworks. In addition, net-oil-exporting MENA countries do not appear to benefit from large oil-fueled deposits that are likely to increase the scale of loans. The findings suggest that governments should consider implementing proactive and favorable economic and institutional policies that are geared toward Islamic finance. Keywords: Islamic banking; Economic growth; MENA region; Westerlund (2007) panel cointegration test; FMOLS (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bor:bistre:v:18:y:2018:i:3:p:231-247 Access Statistics for this article More articles in Borsa Istanbul Review from Research and Business Development Department, Borsa Istanbul Contact information at EDIRC. |
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