The impact of Islamic Banking finance on domestic investment in Malaysia, an econometric study during the period (2020-2001)
Keywords:
Islamic banking financing, local investment, Small and medium enterprisesAbstract
This study aims to highlight the impact of Islamic banking financing on domestic investment in Malaysia for the period 2000-2021, using the Johansen Integration test, relying on local investment as a dependent variable and total Islamic banking financing as an explanatory variable. The study concluded that the Islamic banking financing variable has a positive relationship with the local investment variable in Malaysia. There is a unidirectional causal relationship between Islamic banking financing and local investment, given the contribution of Islamic banks in stimulating local investment through their financing of small and medium enterprises, most of which are owned by the family sector, which are considered the backbone of the Malaysian economy, and which contribute to the economic development of the country.
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