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Islamic Finance and Economic Performance: A Panel Analysis in Selected Countries Alferez, Michelle; Bagtasos, Noel Francis; Chio, Khrystelle Shane; Payot, Justine; Laygan, Resa Mae; Abing, Martha Joy; Capulong, Charlyn; Teves, Maria Rizalia
International Journal of Islamic Economics and Finance (IJIEF) Vol 7, No 2 (2024): IJIEF Vol 7 (2), July 2024
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/ijief.v7i2.22562

Abstract

Financial crises, and stock markets over the years have amply shown how investors’ sentiment affect asset prices and the effectiveness of stock markets. Such a crisis brought down financial institutions sent stock markets tumbling, and left consumers scrambling due to subprime mortgages. With this, Islamic finance adoption has driven demand for Islamic financial products being free from interest. Hence, this study aimed to determine how Islamic finance can influence the economy of 19 selected countries adopting Islamic finance. These countries have marginal to significant scores in Islamic Finance across the years. This study utilized panel data from 2013 to 2021, which was gathered from the Global Islamic Finance Report, Global Innovation Report, and World Bank. A number of diagnostic tests and analyses were performed in order to reach a result that addressed the objectives and problem statement. The Panel Corrected Standard Errors analysis was used as the final model to treat heteroscedasticity, cross-sectional dependence, and autocorrelation. Based on the regression results, Islamic finance has a positive and statistically significant effect on the economy. The regression results indicate a positive and statistically significant impact of Islamic finance on the economies of the studied countries. This finding underscores the potential of Islamic finance to stimulate economic growth, enhance financial stability, and foster inclusivity in financial markets. Consequently, the findings highlight the pivotal role of macroeconomic variables and the adoption of Islamic finance principles in shaping economic outcomes.
Islamic Finance and Economic Performance: A Panel Analysis in Selected Countries Alferez, Michelle; Bagtasos, Noel Francis; Chio, Khrystelle Shane; Payot, Justine; Laygan, Resa Mae; Abing, Martha Joy; Capulong, Charlyn; Teves, Maria Rizalia
International Journal of Islamic Economics and Finance (IJIEF) Vol. 7 No. 2 (2024): IJIEF Vol 7 (2), July 2024
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/ijief.v7i2.22562

Abstract

Financial crises, and stock markets over the years have amply shown how investors’ sentiment affect asset prices and the effectiveness of stock markets. Such a crisis brought down financial institutions sent stock markets tumbling, and left consumers scrambling due to subprime mortgages. With this, Islamic finance adoption has driven demand for Islamic financial products being free from interest. Hence, this study aimed to determine how Islamic finance can influence the economy of 19 selected countries adopting Islamic finance. These countries have marginal to significant scores in Islamic Finance across the years. This study utilized panel data from 2013 to 2021, which was gathered from the Global Islamic Finance Report, Global Innovation Report, and World Bank. A number of diagnostic tests and analyses were performed in order to reach a result that addressed the objectives and problem statement. The Panel Corrected Standard Errors analysis was used as the final model to treat heteroscedasticity, cross-sectional dependence, and autocorrelation. Based on the regression results, Islamic finance has a positive and statistically significant effect on the economy. The regression results indicate a positive and statistically significant impact of Islamic finance on the economies of the studied countries. This finding underscores the potential of Islamic finance to stimulate economic growth, enhance financial stability, and foster inclusivity in financial markets. Consequently, the findings highlight the pivotal role of macroeconomic variables and the adoption of Islamic finance principles in shaping economic outcomes.
An Analysis of the Globalization Impact on Food Supply Adequacy in Selected Developing Countries Alforque, Juliana; Buot, Dhymae Marl; Crampatanta, Charlywin; Paporo, Mohammad Hanif; Laygan, Resa Mae; Abing, Martha Joy; Capulong, Charlyn; Teves, Maria Rizalia
AGRARIS: Journal of Agribusiness and Rural Development Research Vol. 11 No. 1: January-June 2025
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/agraris.v11i1.753

Abstract

Despite ongoing efforts to reduce hunger, inadequate food supply remains a perilous issue in developing countries. The State of Food Security and Nutrition in the World 2024 report highlights the rising incidence of severe food insecurity, particularly in developing countries, and the worsening conditions in nations already experiencing significant hardship. Accordingly, this study aims to assess the role of globalization in addressing food supply adequacy in developing nations. It focused on answering the research gap on whether globalization significantly affects food security. The research utilized data from 80 developing countries from 2012 to 2021. Employing panel-corrected standard error (PCSE) estimation with 800 observations, the analysis revealed that globalization exerted a positive and statistically significant impact on food supply adequacy. A gain of one point in the globalization index enhanced food supply adequacy, all else being equal. Social globalization, political globalization, economically active age group population, and access to finance and financial products for farmers favorably influenced food supply adequacy; however, the World Risk Index (WRI) imposed an adverse impact. Additionally, economic globalization exhibited a detrimental and substantial effect, whereas agricultural total factor productivity demonstrated a positive association lacking statistical significance. These discoveries suggested that globalization enhanced food supply adequacy, emphasizing the necessity for governments in developing countries to adopt policies fostering economic integration and invest in resilient food systems to ensure an adequate food supply.