EconPapers    
Economics at your fingertips  
 

Achieving sustainable economic development through Islamic microfinance and the potential of a proposed two- tier mudarabah waqf business model

Mohammad Ashraful Mobin and Abu Umar Ahmad ()

Chapter 8 in Handbook of Empirical Research on Islam and Economic Life, 2017, pp 193-212 from Edward Elgar Publishing

Abstract: Islamic microfinance provides an alternative model for a significant number of underprivileged people who are not served by conventional microfinance. In order to give access to sustainable services with a greater extent, the Islamic microfinance is in paramount need of the adoption of innovative business models and sound practices into the industry. To this end, the research seeks to propose a two-tier mudarabah model based on cash waqf as an alternative to Islamic microfinance institutions. The objectives of the study are twofold: (1) help develop and implement an appropriate business model; and (2) help make a reform in the present institutional framework for Islamic microfinance and waqf institutions. To test the feasibility and possible implication of the proposed model, this test employed cointegration, vector error correction model (VECM) and the system generalized method of moments (GMM) technique. A total number of 90 conventional and Islamic microfinance institutions are taken as a sample of the empirical study. The study finds that cash waqf-based microfinance institutions can play an important role in financial inclusion and developing socio-economic conditions of the poor and underprivileged people in society.

Keywords: Asian Studies; Economics and Finance (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.elgaronline.com/view/9781784710729.00016.xml (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:16049_8

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().

 
Page updated 2021-07-24
Handle: RePEc:elg:eechap:16049_8