Islamic Banking: How Has it Diffused?
Kangni Kpodar and
Additional contact information
Kangni Kpodar: IMF - "Research Department International Monetary Fund (IMF)"(International Monetary Fund - IMF
Post-Print from HAL
This paper investigates the determinants of the pattern of Islamic bank diffusion around the world using country-level data for 1992-2006. The analysis illustrates that income per capita, share of Muslims in the population and status as an oil producer are linked to the development of Islamic banking, as are economic integration with Middle Eastern countries and proximity to Islamic financial centers. Interest rates have a negative impact on Islamic banking, reflecting the implicit benchmark for Islamic banks. The quality of institutions does not matter, probably because the often higher hurdle set by Shariah law trumps the quality of local institutions in most countries. The 9/11 attacks were not important to the diffusion of Islamic banking; but they coincided with rising oil prices, which are a significant factor in the diffusion of Islamic banking. Islamic banks also appear to be complements to, rather than substitutes for, conventional banks.
Keywords: Islamic banking; Middle East; Poisson regression; Tobit model (search for similar items in EconPapers)
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00669673
References: Add references at CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed
Published in IMF Working Paper, 2010
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Working Paper: Islamic Banking: How Has it Diffused? (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00669673
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().