التكامل الاقتصادي
Volume 9, Numéro 2, Pages 555-564
2021-06-30

Islamic Financial System Efficiency Effects On Sustainable Development: Evidence From Arabic Countries Using An Ardl Panel Data Analysis

Authors : Amani Ismail .

Abstract

Sustainable development is affected by many social, environmental and economical factors. This study aims to assess the impact of islamic financial system efficiency on sustainable development. To asses this impact a panel data ARDL model is tested on a sample of 11 Arabic countries from 2011 to 2018, using Adjusted Net Savings as an endogenous variable. Results show that traditional factors have their theoretical effects, a strong positive impact of population and a negative effect of natural resources rent. While islamic financial system efficiency, measured through IFCI index, have a positive impact on sustainable development in long-run. Arabic countries would benefit from enhancing their islamic finance to reach sustainable development path.

Keywords

sustainable development ; islamic finance ; Arabic countries ; ARDL ; Panel