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The Impact of Islamic Banking on Sustainable Development Indicators in Selected Islamic Countries: An Effective Tool for Improving Sustainable Development
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Mohammad Saeed Panahi Boroujerdi1   , Ahmadali Rezaei2 |
1- Assistant Professor, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran & Faculty of Economics, Allameh Tabatabai University, Tehran, Iran , ms_panahi@atu.ac.ir
2- PhD student, Institute of Higher Education of Islamic Humanities & Al-Mustafa International University, Qom, Iran |
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Abstract: (21 Views) |
Given the importance of sustainable development and the need to address social and economic inequalities in Islamic countries, Islamic banking, as a financial tool with an ethical nature and based on justice, plays a prominent role in the development process. In this regard, this study investigates the impact of Islamic banking on sustainable development indicators in Islamic countries. The sample of the study includes 15 countries from different regions such as the Middle East, Southeast Asia, and North Africa, including Iran, Saudi Arabia, Malaysia, Indonesia, Pakistan, Turkey, Qatar, Kuwait, the United Arab Emirates, Bahrain, Oman, Egypt, Tunisia, Algeria, and Morocco, covering the period from 2010 to 2023. To analyze the data, the Quantile Panel Regression method was employed to measure the impacts of Islamic banking (the ratio of Islamic bank credit to total banking system credit) on sustainable development indicators (human development and income distribution). The results showed that Islamic banking has a varying impact on income distribution across different income levels (from lower to higher quantiles). Generally, this impact is more significant in lower quantiles and decreases in higher quantiles. Regarding the human development index, the impact of Islamic banking was similar, with positive effects observed in the lower quantiles. Ultimately, the findings of this study indicate that Islamic banking can act as an effective tool for improving sustainable development in Islamic countries, especially in reducing economic inequalities and improving human development indicators.
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Article number: 9 |
| Keywords: Islamic Moral Economy, Sustainable Development, Islamic Banking, Quantile Panel Regression, Islamic Countries. |
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Full-Text [PDF 730 kb]
(10 Downloads)
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Article type: Research |
Subject:
Special
Received: 2024/12/30 | Accepted: 2025/03/15 | Published: 2025/10/2
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