IMPACT OF ISLAMIC FINANCE ON ECONOMIC GROWTH: A STUDY OF THE SAARC NATIONS AND KEY TAKEAWAYS FOR INDIA

IMPACT OF ISLAMIC FINANCE ON ECONOMIC GROWTH: A STUDY OF THE SAARC NATIONS AND KEY TAKEAWAYS FOR INDIA

Registration ID: IJNRD_223263

Published ID: IJNRD2406106

DOI: http://doi.one/10.1729/Journal.40109

Dheenabhandhan S , Rebecca Ann Saji , Sunil MP

Islamic Finance, economic growth, Granger Causality, Johansen Co- integration, Financial Inclusion

Purpose: This paper is a quantitative study of the relationship between the development of Islamic Finance and economic growth in the SAARC nations wherein Islamic Finance is adopted and established. Design/Methodology: Annual time-series data of Gross Domestic Product (GDP) growth rate and Gross Fixed Capital Formation (GFCF) growth rate was taken from the World Bank whereas Islamic Finance Development indicator was taken from Zawya and IBFinancing for the period between 2005 to 2022. GDP growth rate and GFCF growth rate were variables taken as proxies for economic growth and Islamic Finance Development indicator as proxy for development in Islamic Finance. For the analysis, Johansen Co-integration test and Granger Causality test were conducted. Findings: The results from the Johansen’s Co-integration test proved that there exists a long term correlation between the Islamic Finance Development variable and economic growth variables and hence they are co-integrated with each other. The Granger tests’ results showed that the growth in Islamic Finance caused growth in the economy too. Furthermore, the results suggested that Islamic Finance also contributed to higher investments in the SAARC nations. Research Limitations: The study presents its suggestions by testing the Islamic Development indicator and economic growth variables of the countries following Islamic Finance in SAARC nations which may or may not be true for India or the rest of the world. Hence this study is only indicative and remotely conclusive for India. Originality/Value: The results of the study will be of importance to economists and policy makers striving to achieve countries’ economic growth.

Published Paper   E-Certificate

"IMPACT OF ISLAMIC FINANCE ON ECONOMIC GROWTH: A STUDY OF THE SAARC NATIONS AND KEY TAKEAWAYS FOR INDIA", IJNRD - INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT (www.IJNRD.org), ISSN:2456-4184, Vol.9, Issue 6, page no.b46-b54, June-2024, Available :https://ijnrd.org/papers/IJNRD2406106.pdf

Volume 9 Issue 6, June-2024

Pages : b46-b54

Paper Reg. ID: IJNRD_223263

Published Paper Id: IJNRD2406106

Downloads: 000121364

Research Area: Social Science and Humanities 

Country: Bangalore, Karnataka, India

Published Paper PDF: https://ijnrd.org/papers/IJNRD2406106.pdf

Published Paper URL: https://ijnrd.org/viewpaperforall?paper=IJNRD2406106

DOI: http://doi.one/10.1729/Journal.40109

Journal Name: INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT(IJNRD)

ISSN: 2456-4184 | IMPACT FACTOR: 8.76 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.76 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: IJNRD (IJ Publication) Janvi Wave

This work is licensed under a Creative Commons Attribution 4.0 International License and The Open Definition

Call For Paper - Volume 10 | Issue 8 | August 2025

IJNRD is Scholarly open access journals, Peer-reviewed, and Refereed Journals, High Impact factor 8.76 (Calculate by google scholar and Semantic Scholar | AI-Powered Research Tool), Multidisciplinary, Monthly, Indexing in all major database & Metadata, Citation Generator, Digital Object Identifier(DOI) with Open-Access Publications.

INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT (IJNRD) aims to explore advances in research pertaining to applied, theoretical and experimental Technological studies. The goal is to promote scientific information interchange between researchers, developers, engineers, students, and practitioners working in and around the world. IJNRD will provide an opportunity for practitioners and educators of engineering field to exchange research evidence, models of best practice and innovative ideas.

Indexing In Google Scholar, SSRN, ResearcherID-Publons, Semantic Scholar | AI-Powered Research Tool, Microsoft Academic, Academia.edu, arXiv.org, Research Gate, CiteSeerX, ResearcherID Thomson Reuters, Mendeley : reference manager, DocStoc, ISSUU, Scribd, and many more

How to submit the paper?

Important Dates for Current issue

Paper Submission Open For: August 2025

Current Issue: Volume 10 | Issue 8

Last Date for Paper Submission: Till 31-Aug-2025

Notification of Review Result: Within 1-2 Days after Submitting paper.

Publication of Paper: Within 01-02 Days after Submititng documents.

Frequency: Monthly (12 issue Annually).

Journal Type: International Peer-reviewed, Refereed, and Open Access Journal.

Subject Category: Research Area