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An Empirical Analysis of Islamic Banking (IBs) Contribution to Indonesia’s Inclusive Growth

Tanggal Publikasi: 14 Nov 2022

Abstrak

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 statistical data, an autoregressive distributed lag (ARDL) model to assess empirically the contribution in the long-term, and an error correction model (ECM) to assess the contribution in the short-term empirically. The findings are, total deposits and total financing only contribute positively significantly to GDP and Gini ratio in the long-term, that similar to the previous study. Then, total financing contributes negatively to all indicators of inclusive growth in the long-term, but, its only significance is on GDP and Gini ratio. This means it contributed significantly to all indicators in the short term.

Keyword

Islamic Banking (IBs), Inclusive Growth, Poverty, Empirical Analysis