Does Islamic banking matter for economic growth in Bangladesh?

Islamic banking started three decades ago in Bangladesh and was expected to have a significant relationship and contribution towards the economic growth of the country. This study aims to investigate the long run and dynamic relationship between Islamic banking development and economic growth in the...

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Main Authors: Abduh, Muhamad, Chowdhury, Nazreen T.
Format: Article
Language:English
Published: Islami Bank Training and Research Academy 2012
Subjects:
Online Access:http://irep.iium.edu.my/26000/
http://irep.iium.edu.my/26000/1/Abduh_%26_Chowdury%2C_IBTRA_2012.pdf
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author Abduh, Muhamad
Chowdhury, Nazreen T.
author_facet Abduh, Muhamad
Chowdhury, Nazreen T.
author_sort Abduh, Muhamad
building IIUM Repository
collection Online Access
description Islamic banking started three decades ago in Bangladesh and was expected to have a significant relationship and contribution towards the economic growth of the country. This study aims to investigate the long run and dynamic relationship between Islamic banking development and economic growth in the case of Bangladesh. The quarterly time-series data of economic growth, total financing and total deposit of Islamic banking from Q1:2004 to Q2:2011 are used in this study. Using cointegration and Granger’s causality method, Islamic bank financing is found to have a positive and significant relationship with economic growth both in the long and short run. It implies that the development of Islamic banking is one of the policies, which should be considered by the government to improve their income.
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spelling iium-260002012-11-06T11:46:14Z http://irep.iium.edu.my/26000/ Does Islamic banking matter for economic growth in Bangladesh? Abduh, Muhamad Chowdhury, Nazreen T. BP173.75 Islam and economics HG1501 Banking Islamic banking started three decades ago in Bangladesh and was expected to have a significant relationship and contribution towards the economic growth of the country. This study aims to investigate the long run and dynamic relationship between Islamic banking development and economic growth in the case of Bangladesh. The quarterly time-series data of economic growth, total financing and total deposit of Islamic banking from Q1:2004 to Q2:2011 are used in this study. Using cointegration and Granger’s causality method, Islamic bank financing is found to have a positive and significant relationship with economic growth both in the long and short run. It implies that the development of Islamic banking is one of the policies, which should be considered by the government to improve their income. Islami Bank Training and Research Academy 2012-09 Article PeerReviewed application/pdf en http://irep.iium.edu.my/26000/1/Abduh_%26_Chowdury%2C_IBTRA_2012.pdf Abduh, Muhamad and Chowdhury, Nazreen T. (2012) Does Islamic banking matter for economic growth in Bangladesh? Journal of Islamic Economics, Banking and Finance, 8 (3). pp. 104-113. ISSN 2070-4658 http://www.ibtra.com/pdf/journal/v8_n3_article6.pdf
spellingShingle BP173.75 Islam and economics
HG1501 Banking
Abduh, Muhamad
Chowdhury, Nazreen T.
Does Islamic banking matter for economic growth in Bangladesh?
title Does Islamic banking matter for economic growth in Bangladesh?
title_full Does Islamic banking matter for economic growth in Bangladesh?
title_fullStr Does Islamic banking matter for economic growth in Bangladesh?
title_full_unstemmed Does Islamic banking matter for economic growth in Bangladesh?
title_short Does Islamic banking matter for economic growth in Bangladesh?
title_sort does islamic banking matter for economic growth in bangladesh?
topic BP173.75 Islam and economics
HG1501 Banking
url http://irep.iium.edu.my/26000/
http://irep.iium.edu.my/26000/
http://irep.iium.edu.my/26000/1/Abduh_%26_Chowdury%2C_IBTRA_2012.pdf