Islamic banking-growth nexus: evidence from Toda-Yamamoto and bootstrap granger causality test

Islamic banking-growth nexus: evidence from Toda-Yamamoto and bootstrap granger causality test

This paper examines the causal relationship between Islamic banking development and economic growth and between Islamic banking development and capital formation in the case of Malaysia. Different with other studies, this paper uses Toda-Yamamoto and bootstrap granger non-causality test to reduce th...

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Main Authors: Abdul Manap, Turkhan Ali, Abduh, Muhamad, Omar, Mohd. Azmi
Format: Article
Language:English
Published: IIUM Institute of Islamic Banking and Finance 2012
Subjects:
BP173.75 Islam and economics
HG1501 Banking
Online Access:http://irep.iium.edu.my/26088/
http://irep.iium.edu.my/26088/
http://irep.iium.edu.my/26088/1/JIF_1%2C1%2C_59-66.pdf
id iium-26088
recordtype eprints
spelling iium-260882012-11-06T10:07:30Z http://irep.iium.edu.my/26088/ Islamic banking-growth nexus: evidence from Toda-Yamamoto and bootstrap granger causality test Abdul Manap, Turkhan Ali Abduh, Muhamad Omar, Mohd. Azmi BP173.75 Islam and economics HG1501 Banking This paper examines the causal relationship between Islamic banking development and economic growth and between Islamic banking development and capital formation in the case of Malaysia. Different with other studies, this paper uses Toda-Yamamoto and bootstrap granger non-causality test to reduce the size distortion in the data and provide more precise test inference than the commonly used asymptotic method especially in the case of small sample size. The results demonstrate a significant Granger causality from Islamic financial development to economic growth but the converse is not true, which supports the Schumpeter’s supply-leading view. The empirical evidence indicates further development of Islamic finance will contribute to the economic growth in the case of Malaysia. IIUM Institute of Islamic Banking and Finance 2012-09-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/26088/1/JIF_1%2C1%2C_59-66.pdf Abdul Manap, Turkhan Ali and Abduh, Muhamad and Omar, Mohd. Azmi (2012) Islamic banking-growth nexus: evidence from Toda-Yamamoto and bootstrap granger causality test. Journal of Islamic Finance, 1 (1). pp. 59-66. ISSN 2289-2117 (O), 2289-2109 (P) http://www.iium.edu.my/iiibf/research-publication/journal-1
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic BP173.75 Islam and economics
HG1501 Banking
spellingShingle BP173.75 Islam and economics
HG1501 Banking
Abdul Manap, Turkhan Ali
Abduh, Muhamad
Omar, Mohd. Azmi
Islamic banking-growth nexus: evidence from Toda-Yamamoto and bootstrap granger causality test
description This paper examines the causal relationship between Islamic banking development and economic growth and between Islamic banking development and capital formation in the case of Malaysia. Different with other studies, this paper uses Toda-Yamamoto and bootstrap granger non-causality test to reduce the size distortion in the data and provide more precise test inference than the commonly used asymptotic method especially in the case of small sample size. The results demonstrate a significant Granger causality from Islamic financial development to economic growth but the converse is not true, which supports the Schumpeter’s supply-leading view. The empirical evidence indicates further development of Islamic finance will contribute to the economic growth in the case of Malaysia.
format Article
author Abdul Manap, Turkhan Ali
Abduh, Muhamad
Omar, Mohd. Azmi
author_facet Abdul Manap, Turkhan Ali
Abduh, Muhamad
Omar, Mohd. Azmi
author_sort Abdul Manap, Turkhan Ali
title Islamic banking-growth nexus: evidence from Toda-Yamamoto and bootstrap granger causality test
title_short Islamic banking-growth nexus: evidence from Toda-Yamamoto and bootstrap granger causality test
title_full Islamic banking-growth nexus: evidence from Toda-Yamamoto and bootstrap granger causality test
title_fullStr Islamic banking-growth nexus: evidence from Toda-Yamamoto and bootstrap granger causality test
title_full_unstemmed Islamic banking-growth nexus: evidence from Toda-Yamamoto and bootstrap granger causality test
title_sort islamic banking-growth nexus: evidence from toda-yamamoto and bootstrap granger causality test
publisher IIUM Institute of Islamic Banking and Finance
publishDate 2012
url http://irep.iium.edu.my/26088/
http://irep.iium.edu.my/26088/
http://irep.iium.edu.my/26088/1/JIF_1%2C1%2C_59-66.pdf
first_indexed 2023-09-18T20:38:54Z
last_indexed 2023-09-18T20:38:54Z
_version_ 1777409231799975936

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