Journal of Applied Islamic Economics and Finance
Vol. 5 No. 2 (2025): Journal of Applied Islamic Economics and Finance (Februari 2025)

Analysis of the Effect of Islamic Capital Market and Islamic Banking Financing on Economic Growth in Indonesia

Putri, Salsa Erika (Unknown)
Mayasari, Ine (Unknown)

Article Info

Publish Date
29 Oct 2025

Abstract

This study aims to analyze the influence of Islamic financial instruments on Indonesia’s economic growth from 2014 to 2024. The study includes Islamic stocks, sukuk, Islamic mutual funds, and Islamic banking financing. The method used is Vector Error Correction Model (VECM), which observes both short-term and long-term relationships. The results indicate that only Islamic stocks have a significant long-term positive effect on economic growth, while sukuk, mutual funds, and Islamic banking financing have yet to show significant impact. The findings suggest a need to enhance the role of Islamic financial instruments through deeper market integration and increased retail investor participation to better support national economic growth.

Copyrights © 2025




Citation Download
RIS
EndNote, Reference Manager, ProCite
BibTex
Latex, Jabref
Original Source
Download Original
Google Scholar
Check in Google Scholar
Journal Info
Journal of Applied Islamic Economics and Finance
Website

Abbrev

jaief

Publisher

Politeknik Negeri Bandung

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Journal of Applied Islamic Economics and Finance is a journal published by the Accounting Department of Politeknik Negeri Bandung, Indonesia. JAIEF (e-ISSN: 2746-6213) is published thrice a year (October, February, and June). As the name implies, this journal brings two major themes, namely Islamic ...