Investigating the Impact of Banking System Facilities on Objectives of Islamic Economy in Iran

Omid Mohammadgholi Pour Tappeh (), Mohammadali Motafakker Azad (), Parviz Mohammadzadeh () and Habib Aghajani ()
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Omid Mohammadgholi Pour Tappeh: Ph. D Student of Islamic Economics, University of Tabriz
Mohammadali Motafakker Azad: Professor of Economics, University of Tabriz
Parviz Mohammadzadeh: Professor of Economics, University of Tabriz.
Habib Aghajani: Assistant Professor of Economics, University of Tabriz

Quarterly Journal of Applied Theories of Economics, 2023, vol. 10, issue 1, 33-58

Abstract: All economic systems create and regulate their subsystems to fulfill their goals. One of the most important economic subsystems is the banking system. In Islamic texts, three main intermediate economic goals have been set for the Islamic economic system in order to achieve economic welfare, which are: security, justice and economic growth. In this analytical-descriptive research which is applied in terms of purpose, first, economic objectives of Islam i.e., economic security indicator and growth index along with economic justice have been calculated in the period 1985-2018. Then, the impact of the banking system through its facilities on these goals has been evaluated using the simultaneous equation model and the 3SLS estimation method. The results show that the facilities of the banking system have a positive effect on growth along with economic justice, but its effect on economic security is negative. Therefore, review in allocation of facilities of banking system is required for simultaneous achieving to the security and growth along with economic justice with Islamic approach

Keywords: Objectives of Islamic Economics; Iran’s Economy; Economic Security; Growth along with Economic Justice; Banking System Facilities; Simultaneous Equation Model; 3SLS Estimation Method (search for similar items in EconPapers)
JEL-codes: E00 E23 I30 O53 P50 (search for similar items in EconPapers)
Date: 2023
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