Empirical Analysis оf Islamic Banking аnd Economic Growth

Abstract

The last decades have been  characterized by sustained economic growth  in which the financial system has played a  crucial role. Banks have been at the center  of this development and have undergone a  profound change. Indeed, the emergence of  Islamic finance and its place internationally  justify the question of its role as a real  generator of financial intermediation.  In this context, the purpose of this paper  is to examine the relationship between  Islamic financial model evaluated by Banks  Islamic and economic growth. Via a study  the in a sample of nine countries, the Islamic  Bank system was developed during the  period (2008-2014), by employing the Panel  Model to see the link between financial  development and economic growth. We  use time series data of Islamic financial  expressed by the following independent  variables (total Islamic Bank assets,  investment accounts and financial assets,  Cost to income ratio, Non-financial income ratio, income on asset ratio). Moreover, real  GDP per capita as dependent variable has  been used.  An Econometric Modelling by the  Generalized Method of Moments (GMM)  of some indicators and the index of  economic growth GDP Consequently, our  study confirms the existence of a positive  correlation but not strong, enough for the  size of Islamic banks in this sample, and  weight in the financial system that remains  average compared to conventional banks.