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Estimation of Nonlinear Vectors of Governance Institutions with Nonlinear Auto Regressive Distributed Lag (NARDL)
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Nehzat Hosseini Sadr1   , Mohammad Reza Nahidi Amir Khiz2 , Roya Aleemran1 |
1- Department of Economics, Ta.c., Islamic Azad University, Tabriz, Iran
2- Department of Economics, Ta.c., Islamic Azad University, Tabriz, Iran , nahidi@iau.ac.ir |
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Abstract: (51 Views) |
The expansion and stability of Islamic banking in recent years and the emergence of financial crises and the inability of the conventional banking system to prevent them have led researchers and economic authorities of countries to pay more attention to the role and importance of Islamic banking and to take steps towards its development. This article examines the impact of governance institutions indicators (right to protest and accountability, political stability without violence, government effectiveness, quality of regulations, rule of law and corruption control) on the performance of the Islamic banking system in Iran during the period 1378:4 to 1400:4 (based on seasonal data) using the econometric technique of Nonlinear Auto Regressive Distributed Lag (NARDL). The results of the estimates indicate that, in the short and long term, the impact of positive (negative) shocks of the rule of law on Islamic banking contracts is positive (negative). The effect of negative shock of corruption control on Islamic banking contracts in the short and long run is positive and the effect of negative shock of government effectiveness is negative but the positive shock has no effect on Islamic banking contracts. The effect of positive shock of regulatory quality on Islamic banking contracts in the short and long run is negative but the negative shock has no effect. In the short run, the effect of positive (negative) shocks of the right to protest and accountability on Islamic banking contracts is positive (negative) but in the long run it has no effect. The negative shock of political stability without violence in the short and long run and the positive shock in the long run have no effect on Islamic banking contracts but the effect of positive shock in the short run is positive.
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Article number: 23 |
| Keywords: Institutional factors, Islamic banking, Nonlinear Auto Regressive Distributed Lag. |
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Full-Text [PDF 1417 kb]
(27 Downloads)
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Article type: Research |
Subject:
Special
Received: 2025/03/28 | Accepted: 2025/06/9 | Published: 2025/06/19
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