The Influence of Islamic Finance, Financial Inclusion and Governance on the Economic Growth of Islamic Countries

  • i. Dr. Muhammed Sajjad Hussain ii. Dr. Muhammad Atif Nawaz iii. Dr. Ramaisa Aqdas iv. Dr. Madiha Riaz


Recently, Islamic banking is considered as the suitable solution of many issues such as poverty, unemployment and inequality, and it is also considered as the possible approach of extensive economic growth. Thus, the objective of the current study is to examine the role of financial inclusion and Islamic Financial Instruments (IFIs) on the economic growth of the selected ten Islamic countries. The data were extracted from the World Bank, Islamic Finance Database & Central Banks Annual Reports from 2007 to 2018. The Generalized Method of Movement (GMM) along with Robust Standard Error techniques of panel data have been used in the present study for analysis. The findings revealed that IFIs and financial inclusion both have a positive impact on the economic growth of the selected Islamic countries. This finding is indeed an interesting one, especially for the emerging economies, which implies that substantial growth should trickle down and one of the indices to gauge it is financial inclusion.


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