The impact of Islamic finance in Islamic banking towards economic growth in selected Southeast Asia and Gulf Cooperation Council (GCC) countries / Siti Fatimah Nasihah Nasrudin

This paper aims to find out the impact of Islamic finance in Islamic banking towards development of economic growth of the country in selected Southeast Asia and Gulf Cooperation Council (GCC) countries. The variables used in this study are Gross Domestic Product per capita (GDP), Gross Fixed Capital Formation (GFCF), Stock market development (SUKUK), total Islamic Financial (IF), total Islamic deposit (ISDEPO). As for the sample of this study, it comprises of 75 observations each for the independent and dependent variables on a yearly basis over 15 years' period from 2001 until 2015. The methodology used in this study is the Multiple Linear Regression with panel data that are gathered from annual report of central bank for each country and world bank data. A software package called E-views will be used in finding and analysing the data. In order to observe the relationship between the Islamic finance and economic growth, an econometric test will be conducted during this research. Based on previous outcomes and findings, it was found that the Islamic finance variable is one of the factors that change the impact of GDP of the country. Hence, the results of this study would give us a demonstrative perspective and could frame a critical premise for financial specialists especially investors and policy makers towards their investment strategies and policy decisions respectively.