Islamic bank financing and economic growth: the Malaysia experience

The main purpose of this research is to determine the cointegration and long run relationship between the Islamic banks’ financing and macroeconomic variables in Malaysia. The macroeconomic variables consist of Gross Domestic Product (GDP), Gross Fixed Capital Formation (GFCF), Foreign Direct Invest...

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Main Authors: Chong, Su Cheing, Ke, Wan Ping, Koh, Cheng Lin, Koh, Hui Syin, Lim, Kai Xin
Format: Final Year Project / Dissertation / Thesis
Published: 2020
Subjects:
Online Access:http://eprints.utar.edu.my/3970/
http://eprints.utar.edu.my/3970/1/fyp_BF_2020_CSC_%2D_1603547.pdf
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author Chong, Su Cheing
Ke, Wan Ping
Koh, Cheng Lin
Koh, Hui Syin
Lim, Kai Xin
author_facet Chong, Su Cheing
Ke, Wan Ping
Koh, Cheng Lin
Koh, Hui Syin
Lim, Kai Xin
author_sort Chong, Su Cheing
building UTAR Institutional Repository
collection Online Access
description The main purpose of this research is to determine the cointegration and long run relationship between the Islamic banks’ financing and macroeconomic variables in Malaysia. The macroeconomic variables consist of Gross Domestic Product (GDP), Gross Fixed Capital Formation (GFCF), Foreign Direct Investment (FDI), Trade (TRADE) and Inflation (INF). This study also examines the causal relationship between the independent variables and dependent variables. There are 36 sample size and the quarterly data are collected from Bank Negara Malaysia and IMF’s International Financial Statistics from period 2010 Q1 to 2018 Q4. In addition, for the review of methodology of framework, the relationship between the variables is investigated by using Johansen Cointegration test, Vector Error Correction Model (VECM), Granger Causality test and also Impulse Response Function. The result showed that IBF with both GDP and TRADE have cointegration in long run. Furthermore, IBF are cointegrated with FDI and INF in a short run. However, there is no cointegration relationship between IBF and GFCF. Not only that, the results of these findings can convey a lot of useful information to some parties like policymakers, investors and also government.
first_indexed 2025-11-15T19:32:09Z
format Final Year Project / Dissertation / Thesis
id utar-3970
institution Universiti Tunku Abdul Rahman
institution_category Local University
last_indexed 2025-11-15T19:32:09Z
publishDate 2020
recordtype eprints
repository_type Digital Repository
spelling utar-39702021-03-04T12:02:50Z Islamic bank financing and economic growth: the Malaysia experience Chong, Su Cheing Ke, Wan Ping Koh, Cheng Lin Koh, Hui Syin Lim, Kai Xin HF Commerce The main purpose of this research is to determine the cointegration and long run relationship between the Islamic banks’ financing and macroeconomic variables in Malaysia. The macroeconomic variables consist of Gross Domestic Product (GDP), Gross Fixed Capital Formation (GFCF), Foreign Direct Investment (FDI), Trade (TRADE) and Inflation (INF). This study also examines the causal relationship between the independent variables and dependent variables. There are 36 sample size and the quarterly data are collected from Bank Negara Malaysia and IMF’s International Financial Statistics from period 2010 Q1 to 2018 Q4. In addition, for the review of methodology of framework, the relationship between the variables is investigated by using Johansen Cointegration test, Vector Error Correction Model (VECM), Granger Causality test and also Impulse Response Function. The result showed that IBF with both GDP and TRADE have cointegration in long run. Furthermore, IBF are cointegrated with FDI and INF in a short run. However, there is no cointegration relationship between IBF and GFCF. Not only that, the results of these findings can convey a lot of useful information to some parties like policymakers, investors and also government. 2020-05-06 Final Year Project / Dissertation / Thesis NonPeerReviewed application/pdf http://eprints.utar.edu.my/3970/1/fyp_BF_2020_CSC_%2D_1603547.pdf Chong, Su Cheing and Ke, Wan Ping and Koh, Cheng Lin and Koh, Hui Syin and Lim, Kai Xin (2020) Islamic bank financing and economic growth: the Malaysia experience. Final Year Project, UTAR. http://eprints.utar.edu.my/3970/
spellingShingle HF Commerce
Chong, Su Cheing
Ke, Wan Ping
Koh, Cheng Lin
Koh, Hui Syin
Lim, Kai Xin
Islamic bank financing and economic growth: the Malaysia experience
title Islamic bank financing and economic growth: the Malaysia experience
title_full Islamic bank financing and economic growth: the Malaysia experience
title_fullStr Islamic bank financing and economic growth: the Malaysia experience
title_full_unstemmed Islamic bank financing and economic growth: the Malaysia experience
title_short Islamic bank financing and economic growth: the Malaysia experience
title_sort islamic bank financing and economic growth: the malaysia experience
topic HF Commerce
url http://eprints.utar.edu.my/3970/
http://eprints.utar.edu.my/3970/1/fyp_BF_2020_CSC_%2D_1603547.pdf