Open AccessAn Empirical Analysis of Islamic Banking (IBs) Contribution to Indonesia’s Inclusive Growth
Author(s) -
Muhammad Yusuf Ibrahim,
Indra Indra
Publication year - 2021
Publication title -
international journal of islamic economics and finance
Language(s) - English
Resource type - Journals
eISSN - 2622-4372
pISSN - 2622-3562
DOI - 10.18196/ijief.v4i0.10342
Subject(s) - distributed lag , islamic banking , econometrics , autoregressive model , economics , term (time) , gini coefficient , inclusive growth , islam , error correction model , statistics , inequality , cointegration , mathematics , geography , economic inequality , economic growth , poverty , mathematical analysis , physics , archaeology , quantum mechanics
The research is aim to attest and assess empirically the contribution of Islamic banking (IBs) on the inclusive growth in Indonesia. By taking a trial-stage method i.e. descriptive analysis to elaborate a statistical data, autoregressive distributed lag (ARDL) model to assess empirically the contribution in a long-term, and error correction model (ECM) to assess the contribution in a short-term empirically. The findings are, total deposits and total financing only contribute positively significant into GDP and gini ratio in a long-term, that similiar with the previous study. Then, a total financing contribute negatively to all indicators of inclusive growth in a long-term, but, its only significance on GDP and gini ratio. Means, it was contribute significantly to all indicators in a short-term.