|
Investigating the threshold effect of Islamic banking development on economic growth in the member countries of the Organization of Islamic Cooperation using the soft panel regression approach
|
Shirin Arefei1   , Roya Aleemram2 , Mohammad Reza Nahidi Amirkhiz3 , Zahra Karimi Tekanlo4 |
1- PhD student, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran
2- Associate Professor, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran , Aleemran@iaut.ac.ir
3- Assistant Professor, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran
4- Associate Professor, Department of Economics, Tabriz University, Tabriz, Iran |
|
|
Abstract: (202 Views) |
The present study was conducted with the aim of investigating the threshold effect of Islamic banking development on economic growth in the member countries of the Organization of Islamic Cooperation. This research is quantitative, in terms of practical purpose, and in terms of the nature and form of implementation, it is descriptive-correlational. Statistical data have been extracted from relevant databases such as the World Bank during the period of 2000-2019 and analyzed using the econometric model of panel smooth transition regression. The results show that in the countries of Islamic cooperation, in the first regime, the effect of Islamic banking, good governance and population on economic growth is negative and significant, and the effect of the added value of the industrial sector is positive and significant. In the second regime, Islamic banking has a positive and significant effect on economic growth, and the added value effect of the industrial sector is also a positive and significant effect. Population variable has a negative and meaningless effect. In the selected countries of Islamic cooperation, in the first regime, Islamic banking and population have a negative and significant effect, and the quality of the government has a positive and significant effect on growth. While the effect of the added value of the industrial sector is negative and meaningless. In the second regime, government spending and the added value of the industrial sector have a positive and significant effect, and Islamic banking and the population have a negative and significant effect on the intensity of economic growth. This result shows the government's attention to improving good governance indicators in the selected countries..
|
Article number: 14 |
| Keywords: Islamic Banking Development, Economic Growth, Member Countries of the Organization of Islamic Cooperation, Panel Smooth Transition Regression |
|
|
Full-Text [PDF 1212 kb]
(40 Downloads)
|
Article type: Research |
Subject:
Special
Received: 2023/10/28 | Accepted: 2024/12/8 | Published: 2025/02/28
|
|
|
|
|
|
|
| Send email to the article author |
|
|
|
| Add your comments about this article |
|
|
|
