VAR Method in Analyzing IBFin and Economic Growth
Abstract
This journal examines the relationship between Total Islamic Banking Financing (IBFin), which is a financial system operating based on Sharia principles, and the economic growth rate in Indonesia, using the Vector Autoregressive (VAR) method to analyze data from 2003 to 2023. This research aims to understand the role of Islamic banking in driving economic growth and to identify any causal relationship between the two variables. The analysis results indicate that there is no significant causal relationship between Islamic Banking Financing (IBFin) and Gross Domestic Product (GDP), suggesting that the two variables do not directly influence each other.
References
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Sulistiana, Ineu, ‘Model Vector Auto Regression (Var) and Vector Error Correction Model (Vecm) Approach for Inflation Relations Analysis, Gross Regional Domestic Product (Gdp), World Tin Price, Bi Rate and Rupiah Exchange Rate’, Integrated Journal of Business and Economics, 1.2 (2017), pp. 17–32, doi:https://doi.org/10.5281/zenodo.1147673
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Zirek, Duygu, Fusun Celebi, and M. Kabir Hassan, ‘The Islamic Banking and Economic Growth Nexus: A Panel VAR Analysis for Organization of Islamic Cooperation (OIC) Countries’, Journal of Economic Cooperation and Development, 37.1 (2016), pp. 69–100
Abduh Muhamad, Mohd Azmi Omar, ‘Islamic Banking and Economic Growth: The Indonesian Experience’, International Journal of Islamic and Middle Eastern Finance and Management, 5.1 (2012), pp. 35–47, doi:10.1108/17538391211216811
Abdullah, Hussin, Nor’ Aznin Abu Bakar, and Sallahuddin Hassan, ‘Analysis of FDI Inflows to China From Selected ASEAN Countries: A Panel Cointegration Approach’, January 2006, 2006, pp. 1–16
Acemoglu, Daron, ‘Introduction to Economic Growth’, Journal of Economic Theory, 147.2 (2012), pp. 545–50, doi:10.1016/j.jet.2012.01.023
Adzimatinur, Fauziyah, and Vigory Gloriman Manalu, ‘The Effect of Islamic Financial Inclusion on Economic Growth: A Case Study of Islamic Banking in Indonesia’, Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4.1 (2021), pp. 976–85, doi:10.33258/birci.v4i1.1699
Ammar, Rym Ayachi, Mehrez Ben Slama, and Dhafer Saidane, ‘La Pratique Actuelle Des Banques Islamiques Favorise-T-Elle La Croissance ?’, Etudes En Economie Islamique, 6.1–2 (2013), pp. 57–82, doi:10.12816/0034691
Bayarçelik, Ebru Beyza, and Fulya Taşel, ‘Research and Development: Source of Economic Growth’, Procedia - Social and Behavioral Sciences, 58 (2012), pp. 744–53, doi:10.1016/j.sbspro.2012.09.1052
Boukhatem, Jamel, and Fatma Ben Moussa, ‘The Effect of Islamic Banks on GDP Growth: Some Evidence from Selected MENA Countries’, Borsa Istanbul Review, 18.3 (2018), pp. 231–47, doi:10.1016/j.bir.2017.11.004
Deane, Phyllis, and S. Kuznets, ‘Modern Economic Growth. Rate, Structure, and Spread.’, The Economic Journal, 77.308 (1967), p. 882, doi:10.2307/2229582
Dridi, Jemma, and Maher Hasan, The Effects of the Global Crisison Islamic and Conventional Banks: A Comparative Study, IMF Working Papers, 2010, X, doi:10.5089/9781455205318.001
Dwi, Auliya, Faisatun Umaiyah, and Bayu Nurhadi, ‘Indeks Saham Syariah Indonesia Dengan Pendekatan Vector Error Correction Model’, 4.2 (2024), pp. 146–58
Febrianti, Dwi Reskiyani, Muhammad Arif Tiro, and S. Sudarmin, ‘Metode Vector Autoregressive (VAR) Dalam Menganalisis Pengaruh Kurs Mata Uang Terhadap Ekspor Dan Impor Di Indonesia’, VARIANSI: Journal of Statistics and Its Application on Teaching and Research, 3.1 (2021), p. 23, doi:10.35580/variansiunm14645
Firdaus, M., Aplikasi Ekonometrika Untuk Data Panel Dan Time Series, 2018, IV
Ganar, Yulian Bayu, Zulfitra Zulfitra, and Sri Retnaning Sampurnaningsih, ‘Pengaruh Nilai Investasi, Tenaga Kerja Dan Pengeluaran Pemerintah Terhadap Pertumbuhan Ekonomi Indonesia Periode 1999-2019’, Jurnal Disrupsi Bisnis : Jurnal Ilmiah Prodi Manajemen, Fakultas Ekonomi, Universitas Pamulang, 4.1 (2021), p. 44, doi:10.32493/drb.v4i1.9120
Gudarzi Farahani, Yazdan, and Masood Dastan, ‘Analysis of Islamic Banks’ Financing and Economic Growth: A Panel Cointegration Approach’, International Journal of Islamic and Middle Eastern Finance and Management, 6.2 (2013), pp. 156–72, doi:10.1108/17538391311329842
Hachicha, Nejib, and Amine Ben Amar, ‘Does Islamic Bank Financing Contribute Economic Growth? The Malaysian Case’, Journal of Islamic and Middle Eastern Finance and Managemental Finance, 34.10 (2008), doi:10.1108/mf.2008.00934jaa.001
Hodge, Graeme A, ‘PENGARUH PERBANKAN SYARIAH TERHADAP PEREKONOMIAN DI INDONESIA’, 66 (2018)
Iqbal, Zamir, and Abbas Mirakhor, Islam’s Perspective on Financial Inclusion, Economic Development and Islamic Finance, 2013, doi:10.1596/9780821399538_ch06
Islamic, Indonesian, and Economic Finance, ‘ANALYSIS OF THE EFFECT OF ISLAMIC BANKING FINANCING AND SUKUK ON ECONOMIC GROWTH ’:, Of Ondonesia Islamic Economi Finance, 3 (2024)
Juanda, Bambang, and Junaidi, ‘Ekonometrika Deret Waktu’, Ipb Press, May 2012, 2012, p. 3
MS, M Zahari, ‘Pengaruh Pengeluaran Pemerintah Terhadap Pertumbuhan Ekonomi Di Provinsi Jambi’, EKONOMIS : Journal of Economics and Business, 1.1 (2017), p. 180, doi:10.33087/ekonomis.v1i1.18
Ruslan, Dede, Pebri Hastuti, and Dedi Irawan, ‘Pengaruh Penanaman Modal Dalam Negeri (Pmdn) Dan Penanaman Modal Asing (Pma) Terhadap Produk Domestik Regional Bruto (Pdrb) Sumatera Utara Tahun 2000-2018’, Niagawan, 9.1 (2020), p. 45, doi:10.24114/niaga.v9i1.17655
Šeho, Mirzet, Obiyathulla Ismath Bacha, and Edib Smolo, ‘The Effects of Interest Rate on Islamic Bank Financing Instruments: Cross-Country Evidence from Dual-Banking Systems’, Pacific Basin Finance Journal, 62 (2020), doi:10.1016/j.pacfin.2020.101292
Sobiech, Anna L., Dimitris K. Chronopoulos, and John O.S. Wilson, ‘The Real Effects of Bank Taxation: Evidence for Corporate Financing and Investment’, Journal of Corporate Finance, 69 (2021), doi:10.1016/j.jcorpfin.2021.101989
Sulistiana, Ineu, ‘Model Vector Auto Regression (Var) and Vector Error Correction Model (Vecm) Approach for Inflation Relations Analysis, Gross Regional Domestic Product (Gdp), World Tin Price, Bi Rate and Rupiah Exchange Rate’, Integrated Journal of Business and Economics, 1.2 (2017), pp. 17–32, doi:https://doi.org/10.5281/zenodo.1147673
Yuniarti, Puji, Wiwin Wianti, and Ratih Setyo Rini, ‘Pertumbuhan Perbankan Syariah Di Indonesia Ditinjau Dari Pembiayaan , NPF , Dan Kepadatan Penduduk Growth Of Sharia Banking In Indonesia View From Financing , NPF , And Population Density’, Jurnal Manajemen Dan Perbankan (JUMPA, 9.Juni (2022), pp. 1–9
Zirek, Duygu, Fusun Celebi, and M. Kabir Hassan, ‘The Islamic Banking and Economic Growth Nexus: A Panel VAR Analysis for Organization of Islamic Cooperation (OIC) Countries’, Journal of Economic Cooperation and Development, 37.1 (2016), pp. 69–100
Published
2024-12-18
How to Cite
Amira, R., Hadi, B., & Aula, K. (2024). VAR Method in Analyzing IBFin and Economic Growth. Annual International Conference on Islamic Economics and Business (AICIEB), 4, 140-149. https://doi.org/https://doi.org/10.18326/aicieb.v4i0.687
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