Examining The Contribution of Islamic Bank to Indonesia Economic Growth
Abstract
This study aims to examine the impact of Islamic finance on economic
growth in Indonesia. Several variables, namely Total Financing, Total Deposits,
Inflation, and Trade Openness are employed for analysis. The research data covers
quarterly observations from the first quarter of 2005 to the fourth quarter of 2021.
Panel data regression analysis using the ARDL model effectively describes the
relationship between the dependent and independent variables. The findings
indicate that Islamic finance has a positive long-term effect on Indonesia's
economic growth. The increase in Total Financing and Total Deposits provides
greater room for accelerated economic growth in Indonesia.
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- Economics [2138]