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The effect of interest rates on investment function: A comparison of major countries with Islamic and conventional banking systems
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Marzieh Daneshmand naruei1   , Mosayeb Pahlavani2 , Marzieh Esfandyari3 |
1- PhD Student, Department of Economics, Sistan and Baluchestan University (Corresponding Author) , m.daneshmand.n@gmail.com
2- Associate Professor, Department of Economics, Sistan and Baluchestan University
3- Associate Professor, Department of Economics, Sistan and Baluchestan University. |
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Abstract: (1544 Views) |
| Islamic banking has attracted much attention in the financial economics literature due to its rapid growth. Islamic banking has emerged as an alternative to the conventional form of banking and has grown rapidly in Muslim and non-Muslim countries over the past three decades. Islamic banks have expanded their bases in more than 60 countries around the world, and Islamic banks are expected to receive a large share of savings in Muslim-majority countries, which play an important role in investing in these countries. Will have. Investment is an important component of macroeconomics and plays an important role in growth and transition from recession. Therefore, the purpose of this study was to investigate the effect of interest rates on the investment function in a selection of major countries with Islamic and conventional banking systems during the period 1995-2018 using the data panel method. The results of this study showed that in both groups of the country studied, the effect of per capita income on investment function was positive and significant. According to other results, in the sample Muslim countries, trading and prudent incentives were stronger than the speculative incentive, and it seems that Keynes' theory of investment demand was not necessarily confirmed in the sample Muslim countries studied for the period under review. |
Article number: 11 |
| Keywords: interest rate, investment, Islamic banking, conventional, data panel. |
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Full-Text [PDF 711 kb]
(713 Downloads)
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Article type: Research |
Subject:
Special
Received: 2021/07/1 | Accepted: 2022/01/5 | Published: 2022/03/1
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