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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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 |
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institution |
International Islamic University Malaysia |
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Online Access |
language |
English |
topic |
BP173.75 Islam and economics HG1501 Banking |
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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 |