International Journal of Islamic Economics and Finance (IJIEF)
International Journal of Islamic Islamic Economics and Finance (IJIEF) is a journal which is bianually issued (January and July) and initiated by International Program for Islamic Economics and Finance (IPIEF). The publisher of this journal is Universitas Muhammadiyah Yogyakarta. The publication of this journal though tighly-peer reviewed process using Open Journal System (OJS). For the publication, IJIEF only accept research article and publish it in electronic (PDF) version. The electronic publication can be accessed openly on the website http://journal.umy.ac.id/index.php/ijief/index. IJIEF commit to embrace the best research article in islamic economics and finance fields from the whole world and publish it consistently.
Articles
192 Documents
<![CDATA[The Potential of Fintech in Enhancing the Use of Salam Contract in Islamic Banking ]]>
<![CDATA[Muneeza, Aishath]]>;
<![CDATA[Mustapha, Zakariya]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3, No 2 (2020): IJIEF Vol 3 (2), July 2020 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.3231
<![CDATA[An Islamic banking system employs different Shariah contracts to develop and offer products and services in different jurisdictions. One of such contracts is salam which is a forward sale contract. This study aims to examine the practice of salam as an instrument of Islamic banks financing and how technology can be used to enhance its application thereto. A qualitative approach is employed in this research where primary data sources on salam contract were examined, along with content analysis of relevant secondary data sources on the contract and how its practiced in Islamic banking. In furtherance of that practice, salam instrument can be leveraged on technology, mainly the blockchain. This would enhance its operation by bringing about automation, transparency, fair pricing, saving time and cost as well as enabling widespread access of Islamic bank financing to smaller enterprises to promote societal well-being. This research reveals that salam instruments cater for different clients’ needs and enjoy patronage in many jurisdictions even though it is currently the least utilized contract in Islamic banks financing due to divergence of juristic views on its general permissibility. Also, salam is an exceptional contract for Islamic banks financing of agriculture and related enterprises among others. The research offers an insight for Islamic banks to leverage on technology in utilizing salam contract towards providing financing for variety of clients, particularly poor farmers. Similarly, jurisdictions not practicing salam stand to learn of the benefits of using salam to offer technologically innovative yet affordable Islamic banking products/services for variety of clients.]]>
<![CDATA[Factors Determining the Successful Performance of Baitul Maal Wat Tamwil in Wonosobo ]]>
<![CDATA[Dawami, Qosdan]]>;
<![CDATA[Razak, Dzuljastri Abdul]]>;
<![CDATA[Hamdan, Hamdino]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 1 (2021): IJIEF Vol 4 (1), January 2021 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i1.10484
<![CDATA[Notwithstanding Baitul Maal wat Tamwil (BMT) has spread tremendously over the past three decades in Indonesia, some of them faced various obstacles that hamper their effectiveness and sustainability. While some of others sustained and developed well, even in the economic crisis conditions. Hence, this study aims to investigate the factors that determine the successful performance of BMT. This study is a field research with triangulation as a mixed method approach through semi-structured interviews and questionnaires. Whereby the empirical data were collected by means of conducting semi-structured interviews with 3 managers of the BMTs and administering questionnaires to 285 employees of the BMTs. This study examined five factors that influence the BMT performance, namely the capital structure of funding, the governance of the BMT, the human resource adequacy, the product innovation and the repayment of financing products. The results pointed that among the five selected factors, only three factors had positive and significant influence on the successful performance of the BMT, they are the capital structure of funding, the human resource adequacy and the product innovation. The result of this study will also assist policy makers and the BMT managers in further improving the effectiveness and sustainability of the BMT in Indonesia.]]>
<![CDATA[Investigating Fairness in Transactions: Evidence in Belief Systems ]]>
<![CDATA[Hazik Mohamed]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 1, No 2 (2019): IJIEF Vol 1 (2), January 2019 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.127
<![CDATA[Fairness is one of the central institutional pillars of Islamic law, and its inherent legal framework dictates, among other things, clarity and ethical behaviors in all our endeavors. Righteous behaviors form the foundation of fairness and justice. This paper attempts to address deep religious understanding in human behavior for fairness and justice so as to use religious values in productive economic behaviors, like the sharing risk and benefits in mutual agreements.The methodology of this study assesses the behavior of the subject pool (players representative of Muslims and non-Muslims) through the Ultimatum Game that was designed to test fairness and experiment in decision-making to measure fairness in economic transactions and to observe the level of religious-specific acceptance norms. This paper provides an actual behavioral investigation into how people (Muslims and non-Muslims) behave in real life, whether it is in accordance to what their religion prescribes to them or otherwise. In terms of fairness in contracting, non-Muslims performed a little bit better than Muslims but there were significant differences between the primed and unprimed subjects in the Muslim and non-Muslim groups where it was positive for the Muslim group and negative for the non-Muslim group.]]>
<![CDATA[Muzakki Potentials’ Role in Alleviating Poverty (Study Case in Aceh) ]]>
<![CDATA[Pratama, Siectio Dicko]]>;
<![CDATA[Rahadiana, Rizal]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3, No 1 (2020): IJIEF Vol 3 (1), January 2020 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.2123
<![CDATA[Zakat is an obligation in Islam which commands the followers to pay a few money to the poor, the needy and other particular recipients determined by Qur’an. Since Zakat is obligatory only for the rich, the system should be able to reduce inequality and poverty. Aceh has implemented a zakat management program since 2006. Nevertheless, the impact of this program has not appeared. This study aims to analyze the impact of potential muzakki in Aceh to poverty reduction and identify the main factors contributing to the rise of muzakki. By using Socio-economic survey data from BPS-Statistics of Aceh Province, the potential of muzakki numbers can be estimated. Then, the impact on the poverty will be analyzed. The method used to identify the variables affecting the muzakki numbers is Multiple Linear Regression with Stepwise Selection method. The result shows that the potential muzakki in Aceh reaches 3 million people and able to reduce the poverty rate by approximately 3.25 percent. Subsequently, the economic size and the average number of dependents are the significant variables whose impact to increase the number of muzakki. For maximizing these opportunities, the data and program synchronization between the governments with zakat institutions are suggested.]]>
<![CDATA[Mediating Role of Customer Satisfaction between Service Quality and Customer Loyalty with Non-Interest Bank in Nigeria ]]>
<![CDATA[Sulaiman, Sagir Muhammad]]>;
<![CDATA[Muhammad, Muhammad Abdulaziz]]>;
<![CDATA[Muhammad, Aliyu Dahiru]]>;
<![CDATA[Sabiu, Tasiu Tijjani]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 1 (2021): IJIEF Vol 4 (1), January 2021 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i1.10424
<![CDATA[The world has become a global village as competition among banks is now intense. Globalization is fuelling increased competition in Nigerian banking industry and as a result, banks are challenged to adopt customer centred strategies that would enable them to gain customer loyalty, maximize profitability and survive the competition. There is no business that survives without customers’ patronage and Islamic banks are not an exception. Customers are key stakeholders to the survival of any business, thus, satisfying the customer through providing high quality services is core to Islamic banking business. The aim of the study is to examine the mediating role of customer satisfaction in investigating the relationship between service quality and customer loyalty in non-interest bank i.e. Jaiz Bank of Kano state metropolis, Nigeria. The variance based (SEM) technique is employed in analyzing the hypothesized model of the study. Service quality positively and significantly influences customer satisfaction and customer loyalty, whereas, customer satisfaction does not significantly mediate the relationship between service quality and customer loyalty among customers of Jaiz bank in Kano state metropolis, Nigeria. The study recommends for providing high quality service in order to achieved maximum loyalty from the customers. It was further recommended on the need for reviving of the existing regulatory bodies or institutions that will ensure proper implementation of good service quality delivery among non-interest banks in Nigeria.]]>
<![CDATA[Towards the Implementation of Monetary Management in Islamic Economic System Based on Recent Developments ]]>
<![CDATA[Hassan, Mohammad Kabir]]>;
<![CDATA[Shah, Muhammad Abdul Rehman]]>;
<![CDATA[Alazhari, Manzoor Ahmad]]>;
<![CDATA[Selim, Mohammad]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i2.11777
<![CDATA[Monetary management is an essential part of the objectives of Shari’ah under the umbrella of the preservation of wealth (Ma’al). Our primary sources: Qur’an and Sunn’ah, provide divine legislation on the prohibition of Riba to manage bases of monetary transaction. Further, the juristic tools facilitate scholars to propose solutions to meet the emerging issues on diversified aspects of society. Muslim scholars have always adapted and contributed to the Islamic finance system and regulation, theoretically and practically. In recent decades, Islamic banking and finance has seen strong momentum with double digit growth, fulfilling the monetary requirement of depositors on the liability side along with industry on the asset side. We seek to review the theoretical and empirical literature on Islamic monetary mangement. Monetary management in the Islamic economic context is still an area that needs more research. This paper examines how literature has been developed over time up until modern Islamic economic and banking practices. The findings suggest that Islamic monetary management has been gradually developed in recent years and such development is remarkable steps forward in pursuing Islamic monetary policy independently. In addition, Islamic monetary policy is proved to be relatively more effective compared to interest based conventional monetary policy. The implications of such findings have established new milestones for the central banks of all the countries, including the muslim majority countries for pursuing interest free Islamic monetary policy with full confidence.  Furthermore, there are four major views on Islamic monetary policy and the central banks of the world should choose one of the best methods and views for the greater effectiveness of monetary policy because conventional monetary policy has been less effective in bringing full employment and price stability in recent years and financial crisis has crippled the interest based conventional economic systems quite badly.]]>
<![CDATA[MICROFINANCE-ECONOMIC GROWTH NEXUS: A CASE STUDY ON GRAMEEN BANK IN BANGLADESH ]]>
<![CDATA[Amin, Md. Fouad Bin]]>;
<![CDATA[Uddin, Shah Jalal]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 1, No 1 (2018): IJIEF Vol 1 (1), July 2018 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.112
<![CDATA[Microfinance is one of the fastest growing sectors in Bangladesh and in many parts of the world. Over the last few decades, this sector has been supportive in achieving various socio-economic goals in Bangladesh. The country has made remarkable progress in sectors like education and health, and most importantly it has contributed significantly in poverty alleviation. Although the microfinance mostly concentrates at the micro level, it has direct effect on the macro economy.  A forefront Microfinance provider like Grameen Bank has been playing a key role for the socio-economic wellbeing of the people living in the rural areas as well as for the economic development of rural economy. This study aims to investigate the long run dynamic relationship among its loan financing and clients’ deposit and economic growth in Bangladesh. By considering annual time-series data of these variables, a widely used cointegration test and Granger’s causality test have been applied to examine the long run relationship among these variables. The result shows that both financing and depositing aspects of Grameen Bank have positive effect on economic growth of Bangladesh in the long run. It is recommended that Grameen Bank should allow its operations without any external pressure for the sake of sound economic growth of the country. ]]>
<![CDATA[Perception of Stakeholders on Abandoned Housing Projects in Malaysia ]]>
<![CDATA[Ariffin, Noraini Mohd]]>;
<![CDATA[Razak, Dzuljastri Abdul]]>;
<![CDATA[Imtiyaz, Mohamed Noorden Mohamed]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 2, No 1 (2019): IJIEF Vol 2 (1), July 2019 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.2118
<![CDATA[Home is a basicnecessity for everyone. However, one of the major issues affecting the construction industry in Malaysia today is that of abandoned housing projects. This issue has caused sufferings to the individuals and society. Several reasons have been cited for the abandoned housing projects, which include the debt financing structure, lack of justice and fairness, and weak regulatory system. The issues of the Islamic banking debt-based home financing products have remained prominent. There are also other issues such as role of the authority in addressing the situations. This study used mixed method of surveys and interviews in determining the perceptions of stakeholders regarding abandoned housing projects in Malaysia. The outcome of study highlights various prospects of mitigating the problem of abandoned housing projects. The findings show that the main cause of abandoned housing project from the interview with the relevant stakeholders is still due to insufficient legal provisions and protection to avoid and prevent abandonment of the housing projects, which is consistent with the previous studies. ]]>
<![CDATA[The Role of Zakat, Infaq and Shadaqah (ZIS) in Reducing Poverty in Aceh Province ]]>
<![CDATA[Saputro, Eko Gondo]]>;
<![CDATA[Sidiq, Sahabudin]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3 (2020): IJIEF Vol 3(SI), Special Issue: Islamic Social Finance and Ethics ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.3234
<![CDATA[Aceh is one of the provinces that paves the way for the Islamic development in Indonesia. Therefore, Aceh has a strong Islam preaching and becomes the center of science. Innovations made in Islamic knowledge with government policies in managing zakat funds collected from the community-made Aceh are through the BAZNAS in provincial level namely Baitul Mal Aceh; one of the BAZNAS with highly effective Allocation to Collection Ratio (ACR) levels. Baitul Mal Aceh has a superior program aiming at making Mustahik into Muzzaki consisting of education, health assistance, and economic empowerment programs. This research was conducted to see the effect of Zakat, Infaq, Shadaqah (ZIS) through Economic Growth, Education, Health, and HDI on Poverty in Aceh. The method used in this research was Structural Equation Model-Partial Least Square (SEM-PLS). The results revealed the direct effect of ZIS on Economic Growth, Health, and HDI, as well as the total indirect effect of ZIS on Economic Growth and Poverty in Aceh. The results also showed that the effect of ZIS through Health and HDI on Economic Growth and the effect of ZIS through HDI on Poverty in Aceh.]]>
<![CDATA[Determinant of Indonesian Banking Profitability: Case Study Dual Banking System ]]>
<![CDATA[Achsani, Muhammad Nur Faaiz Fathah]]>;
<![CDATA[Kassim, Salina]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4 (2021): IJIEF Vol 4 (SI), Special Issue: Islamic Banking ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i0.10464
<![CDATA[Islamic banking is considered as the perfect alternative of the current conventional financial system. However, there is still a huge amount of criticisms in terms of its practice, with many claims that Islamic banking and finance simply replaces conventional banking terminology and offers near-identical services to its clients but at a higher cost. The objective of this study is to make a comparative empirical assessment on the determinants of profitability between the Islamic and conventional banks in Indonesia. The panel data regression is applied to analyze the relationship between profitability indicators and both industry and country level characteristics. As far as the author knows, only few studies compare the profitability of Indonesian Islamic banks and conventional banks, especially in using econometrics approach. From the empirical result in the combined model, it is known that conventional banks are more profitable than Islamic banks. Compared to the combined regression, there is no significant difference in terms of significance of the independent variables and its relationship with the dependent variable for the conventional bank regression. Conventional banks are more familiar for the community due to the long operation compared to Islamic banks. Socialization needs to be done with some approach starting from mosques and Islamic schools. The development of supporting industries such as halal industry and halal tourism are also important to increase the demand for Islamic banking product. Beside increasing the demand, efforts to increase the economics of scale is also important with various efforts such as merger or acquisition.]]>
