Impact of Islamic Finance on Economic Growth in Egypt

Mohamed Fathy Abdelgany; Rahaf Mohammed Hussein

doi:doi:10.11648/j.ijefm.20231103.12

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Impact of Islamic Finance on Economic Growth in Egypt

Mohamed Fathy Abdelgany, Rahaf Mohammed Hussein

Published in International Journal of Economics, Finance and Management Sciences (Volume 11, Issue 3)

Received: 25 March 2023 Accepted: 24 April 2023 Published: 10 May 2023

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Abstract

The importance of Islamic finance is increasing worldwide not only in countries which its majority are Muslims but also in countries where Muslims are minority such as Japan and the United Kingdom whereas the number of Islamic financial institutions has increased significantly in the Middle East and Southeast Asia, however, the literature that examined Islamic finance impact on the real economy is rare, thus, the aim of this paper is to examine the effect of Islamic finance, specifically Islamic banking, on economic growth and on investment in Egypt through two empirical models; the first one examines the impact of Islamic finance on economic growth and the second one examines the impact of Islamic finance on investment. For both models, the paper utilizes annual time series data during the period from 2002 up to 2021 and employs Autoregressive Distributed Lag (ARDL) bounds testing approach, and Error Correction Model (ECM). The results of the paper demonstrate that there is a significant positive relationship between Islamic finance and economic growth and between Islamic finance and investment in Egypt. The paper recommends increasing the accessibility to Islamic financial services by increasing the Islamic banks branches and ATMs and Islamic banks should care about marketing of its products.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 11, Issue 3)
DOI	10.11648/j.ijefm.20231103.12
Page(s)	93-103
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Islamic Finance, Economic Growth, Investment, ARDL Bounds Test, ECM, Egypt

References

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APA Style

Mohamed Fathy Abdelgany, Rahaf Mohammed Hussein. (2023). Impact of Islamic Finance on Economic Growth in Egypt. International Journal of Economics, Finance and Management Sciences, 11(3), 93-103. https://doi.org/10.11648/j.ijefm.20231103.12

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ACS Style

Mohamed Fathy Abdelgany; Rahaf Mohammed Hussein. Impact of Islamic Finance on Economic Growth in Egypt. Int. J. Econ. Finance Manag. Sci. 2023, 11(3), 93-103. doi: 10.11648/j.ijefm.20231103.12

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AMA Style

Mohamed Fathy Abdelgany, Rahaf Mohammed Hussein. Impact of Islamic Finance on Economic Growth in Egypt. Int J Econ Finance Manag Sci. 2023;11(3):93-103. doi: 10.11648/j.ijefm.20231103.12

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@article{10.11648/j.ijefm.20231103.12,
  author = {Mohamed Fathy Abdelgany and Rahaf Mohammed Hussein},
  title = {Impact of Islamic Finance on Economic Growth in Egypt},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {11},
  number = {3},
  pages = {93-103},
  doi = {10.11648/j.ijefm.20231103.12},
  url = {https://doi.org/10.11648/j.ijefm.20231103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20231103.12},
  abstract = {The importance of Islamic finance is increasing worldwide not only in countries which its majority are Muslims but also in countries where Muslims are minority such as Japan and the United Kingdom whereas the number of Islamic financial institutions has increased significantly in the Middle East and Southeast Asia, however, the literature that examined Islamic finance impact on the real economy is rare, thus, the aim of this paper is to examine the effect of Islamic finance, specifically Islamic banking, on economic growth and on investment in Egypt through two empirical models; the first one examines the impact of Islamic finance on economic growth and the second one examines the impact of Islamic finance on investment. For both models, the paper utilizes annual time series data during the period from 2002 up to 2021 and employs Autoregressive Distributed Lag (ARDL) bounds testing approach, and Error Correction Model (ECM). The results of the paper demonstrate that there is a significant positive relationship between Islamic finance and economic growth and between Islamic finance and investment in Egypt. The paper recommends increasing the accessibility to Islamic financial services by increasing the Islamic banks branches and ATMs and Islamic banks should care about marketing of its products.},
 year = {2023}
}

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TY  - JOUR
T1  - Impact of Islamic Finance on Economic Growth in Egypt
AU  - Mohamed Fathy Abdelgany
AU  - Rahaf Mohammed Hussein
Y1  - 2023/05/10
PY  - 2023
N1  - https://doi.org/10.11648/j.ijefm.20231103.12
DO  - 10.11648/j.ijefm.20231103.12
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 93
EP  - 103
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20231103.12
AB  - The importance of Islamic finance is increasing worldwide not only in countries which its majority are Muslims but also in countries where Muslims are minority such as Japan and the United Kingdom whereas the number of Islamic financial institutions has increased significantly in the Middle East and Southeast Asia, however, the literature that examined Islamic finance impact on the real economy is rare, thus, the aim of this paper is to examine the effect of Islamic finance, specifically Islamic banking, on economic growth and on investment in Egypt through two empirical models; the first one examines the impact of Islamic finance on economic growth and the second one examines the impact of Islamic finance on investment. For both models, the paper utilizes annual time series data during the period from 2002 up to 2021 and employs Autoregressive Distributed Lag (ARDL) bounds testing approach, and Error Correction Model (ECM). The results of the paper demonstrate that there is a significant positive relationship between Islamic finance and economic growth and between Islamic finance and investment in Egypt. The paper recommends increasing the accessibility to Islamic financial services by increasing the Islamic banks branches and ATMs and Islamic banks should care about marketing of its products.
VL  - 11
IS  - 3
ER  -

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Author Information

Mohamed Fathy Abdelgany

Economics Department, Faculty of Politics and Economics, Beni-Suef University, Beni Suef, Egypt
Rahaf Mohammed Hussein

Economics Department, Faculty of Politics and Economics, Beni-Suef University, Beni Suef, Egypt

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APA Style

Mohamed Fathy Abdelgany, Rahaf Mohammed Hussein. (2023). Impact of Islamic Finance on Economic Growth in Egypt. International Journal of Economics, Finance and Management Sciences, 11(3), 93-103. https://doi.org/10.11648/j.ijefm.20231103.12

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ACS Style

Mohamed Fathy Abdelgany; Rahaf Mohammed Hussein. Impact of Islamic Finance on Economic Growth in Egypt. Int. J. Econ. Finance Manag. Sci. 2023, 11(3), 93-103. doi: 10.11648/j.ijefm.20231103.12

Copy | Download

AMA Style

Mohamed Fathy Abdelgany, Rahaf Mohammed Hussein. Impact of Islamic Finance on Economic Growth in Egypt. Int J Econ Finance Manag Sci. 2023;11(3):93-103. doi: 10.11648/j.ijefm.20231103.12

Copy | Download

@article{10.11648/j.ijefm.20231103.12,
  author = {Mohamed Fathy Abdelgany and Rahaf Mohammed Hussein},
  title = {Impact of Islamic Finance on Economic Growth in Egypt},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {11},
  number = {3},
  pages = {93-103},
  doi = {10.11648/j.ijefm.20231103.12},
  url = {https://doi.org/10.11648/j.ijefm.20231103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20231103.12},
  abstract = {The importance of Islamic finance is increasing worldwide not only in countries which its majority are Muslims but also in countries where Muslims are minority such as Japan and the United Kingdom whereas the number of Islamic financial institutions has increased significantly in the Middle East and Southeast Asia, however, the literature that examined Islamic finance impact on the real economy is rare, thus, the aim of this paper is to examine the effect of Islamic finance, specifically Islamic banking, on economic growth and on investment in Egypt through two empirical models; the first one examines the impact of Islamic finance on economic growth and the second one examines the impact of Islamic finance on investment. For both models, the paper utilizes annual time series data during the period from 2002 up to 2021 and employs Autoregressive Distributed Lag (ARDL) bounds testing approach, and Error Correction Model (ECM). The results of the paper demonstrate that there is a significant positive relationship between Islamic finance and economic growth and between Islamic finance and investment in Egypt. The paper recommends increasing the accessibility to Islamic financial services by increasing the Islamic banks branches and ATMs and Islamic banks should care about marketing of its products.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Impact of Islamic Finance on Economic Growth in Egypt
AU  - Mohamed Fathy Abdelgany
AU  - Rahaf Mohammed Hussein
Y1  - 2023/05/10
PY  - 2023
N1  - https://doi.org/10.11648/j.ijefm.20231103.12
DO  - 10.11648/j.ijefm.20231103.12
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 93
EP  - 103
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20231103.12
AB  - The importance of Islamic finance is increasing worldwide not only in countries which its majority are Muslims but also in countries where Muslims are minority such as Japan and the United Kingdom whereas the number of Islamic financial institutions has increased significantly in the Middle East and Southeast Asia, however, the literature that examined Islamic finance impact on the real economy is rare, thus, the aim of this paper is to examine the effect of Islamic finance, specifically Islamic banking, on economic growth and on investment in Egypt through two empirical models; the first one examines the impact of Islamic finance on economic growth and the second one examines the impact of Islamic finance on investment. For both models, the paper utilizes annual time series data during the period from 2002 up to 2021 and employs Autoregressive Distributed Lag (ARDL) bounds testing approach, and Error Correction Model (ECM). The results of the paper demonstrate that there is a significant positive relationship between Islamic finance and economic growth and between Islamic finance and investment in Egypt. The paper recommends increasing the accessibility to Islamic financial services by increasing the Islamic banks branches and ATMs and Islamic banks should care about marketing of its products.
VL  - 11
IS  - 3
ER  -

Copy | Download