The Indonesian Journal of Islamic Economics Research
Vol. 6 No. 2 (2024)

The impact of fiscal spending and financing by Sharia banks on economic growth in Indonesia

Risdiana Himmati (Universitas Islam Negeri Sayyid Ali Rahmatullah Tulungagung, Indonesia)
Badara Shofi Dana (Universitas Islam Negeri Sayyid Ali Rahmatullah Tulungagung, Indonesia)
Kesy Indraswari (Universitas Islam Negeri Sayyid Ali Rahmatullah Tulungagung, Indonesia)
Agus Salim (Xi'an Jiaotong University, Shaanxi, China)

Article Info

Publish Date
27 Dec 2024

Abstract

Economic activity can be increased by fiscal policy stimulus and financing by Sharia banks. This study aims to analyze the roles of fiscal policy and banking sector in driving Indonesia’s economic growth. Fiscal Policy, Macroeconomics, Financing, and Economic Growth are the variables used in this study. The data used is secondary data for the 2014-2023 period. This study uses the Error Correction Model (ECM) method. The results show that Fiscal Policy with proxy tax and government expenditure influence Economic Growth. On the other hand, the Financing of the banking sector influences Economic Growth.

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Journal Info
The Indonesian Journal of Islamic Economics Research
Website

Abbrev

ijier

Publisher

Universitas Islam Negeri Salatiga

Subject

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

Description

Indonesian Journal of Islamic Economics Research ( IJIER) is a research journal in the discipline of Islamic economics which is expected to contribute to a new or state-of-the-art for academic development or real-world applications, or both. This journal encompasses original research articles, ...