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What Determines Foreign Direct Investment in Muslim Countries? Azzaki, Muhammad Adnan; Qizam, Ibnu; Qoyum, Abdul
Share: Jurnal Ekonomi dan Keuangan Islam Vol. 12 No. 2 (2023)
Publisher : Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-Raniry

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22373/share.v12i2.20840

Abstract

This study examines the influence of institutional quality, green economy policies, and financial development on Foreign Direct Investment (FDI) in Muslim countries. It employed panel data from 2010 to 2020 and is analyzed using the Dynamic Panel Model with the Generalized Method of Moments (GMM), which allows for handling endogeneity problems that often arise in panel data analysis. Statistical testing revealed that most institutional quality indicators, such as Political Stability, Government Effectiveness, Regulatory Quality, and Rule of Law, significantly and positively impact foreign direct investment. Additionally, the green economy, represented by natural resources, human capital, and the overall regulatory environment, also exerts a significant positive effect on foreign direct investment. Similar outcomes were observed in the financial sector's development, which significantly and positively reinforced the relationship between institutional quality and the green economy on foreign direct investment in Muslim countries. These results suggest a positive trajectory for resource management potential that can enhance the investment climate in Muslim countries. The findings offer valuable insights for policymakers in formulating effective strategies to boost capital inflows in Muslim countries. Policymakers are advised to consistently monitor both institutional quality and green economy indicators to discern investor preferences for foreign direct investment inflows.==============================================================================================================ABSTRAK – Determinan Apa yang Mempengaruhi Investasi Asing Langsung di Negara-negara Muslim? Paper ini menguji pengaruh kualitas kelembagaan, kebijakan ekonomi hijau, dan pembangunan keuangan terhadap Investasi Asing Langsung (FDI) di negara-negara Muslim. Studi ini menggunakan data panel tahun 2010 hingga 2020 yang dianalisis dengan Model Panel Dinamis dengan Generalized Method of Moments (GMM) yang memungkinkan penanganan masalah endogenitas yang sering muncul dalam analisis data panel. Hasil pengujian statistik menunjukkan bahwa sebagian besar indikator kualitas kelembagaan yang diwakili oleh Stabilitas Politik, Efektivitas Pemerintah, Kualitas Peraturan, dan Supremasi Hukum berpengaruh positif signifikan terhadap penanaman modal asing langsung. Selain itu, ekonomi hijau, yang tercermin pada sumber daya alam, sumber daya manusia, dan peraturan lingkungan secara keseluruhan mempunyai dampak positif yang signifikan terhadap investasi asing langsung. Hasil serupa juga diperoleh pada pengembangan sektor keuangan yang mampu memperkuat hubungan kualitas institusi dan ekonomi hijau terhadap investasi asing langsung di negara-negara Muslim secara positif dan signifikan. Temuan ini menunjukkan tren positif mengenai potensi pengelolaan sumber daya yang dapat menciptakan manfaat bagi iklim investasi di negara-negara Muslim. Temuan-temuan ini juga mempunyai implikasi berharga bagi para pembuat kebijakan dalam merancang strategi efektif untuk meningkatkan aliran modal di negara-negara Muslim. Mereka disarankan untuk terus memantau kualitas kelembagaan dan indikator ekonomi hijau untuk mengidentifikasi preferensi investor terhadap arus masuk investasi asing langsung.
Determinan Profil Risiko Terhadap Performance Bank Pembiayaan Rakyat Syariah Di Provinsi Sumatera Barat Azlina, Nur; Shabri, Husni; Qizam, Ibnu
Al-bank: Journal of Islamic Banking and Finance Vol 3 No 2 (2023): July - Desember 2023
Publisher : Universitas Islam Negeri Mahmud Yunus Batusangkar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31958/ab.v3i2.9169

Abstract

This study aims to analyze the effect of risk profile on the performance of Islamic Rural Bank (BPRS) in West Sumatra Province. This type of research is a field research with a quantitative approach. The samples in the study were seven BPRS in West Sumatra Province that have been operating sharia since 2019. Secondary data in the form of annual financial statements of each BPRS for the period 2019-2022. The analysis technique used panel data regression. The results showed that the credit risk profile using the Non Performing Financing ratio and liquidity risk using the Financing to Deposit Ratio partially had no significant effect on the performance of BPRS as measured using the Return on Asset ratio. However, both risk profiles simultaneously have a significant effect on the performance of BPRS with a coefficient of determination of 96%. The practical implication of this research is that credit risk and liquidity risk must be managed simultaneously, including other risks faced by banks because they have a very strong influence on bank performance.