Empirical Analysis of Islamic Banking and Economic Growth

Melloul Anass (), Chaik Saif Eddine () and Oujgha Reda ()
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Melloul Anass: University Mohamed V, Rabat, Morocco
Chaik Saif Eddine: University Mohamed V, Rabat, Morocco
Oujgha Reda: University Mohamed V, Rabat, Morocco

Economic Alternatives, 2017, issue 1, 89-102

Abstract: The last decades have been characterized by sustained economic growth in which the financial system has played a crucial role. Banks have been at the center of this development and have undergone a profound change. Indeed, the emergence of Islamic finance and its place internationally justify the question of its role as a real generator of financial intermediation. In this context, the purpose of this paper is to examine the relationship between Islamic financial model evaluated by Banks Islamic and economic growth. Via a study the in a sample of nine countries, the Islamic Bank system was developed during the period (2008-2014), by employing the Panel Model to see the link between financial development and economic growth. We use time series data of Islamic financial expressed by the following independent variables (total Islamic Bank assets, investment accounts and financial assets, Cost to income ratio, Non-financial income ratio, income on asset ratio). Moreover, real GDP per capita as dependent variable has been used. An Econometric Modelling by the Generalized Method of Moments (GMM) of some indicators and the index of economic growth GDP Consequently, our study confirms the existence of a positive correlation but not strong, enough for the size of Islamic banks in this sample, and weight in the financial system that remains average compared to conventional banks.

Keywords: economic growth; financial development; Islamic Bank; Econometric Modeling (search for similar items in EconPapers)
JEL-codes: C50 E44 G21 O47 (search for similar items in EconPapers)
Date: 2017
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