Naslov
Macroeconomic dynamics in selected countries with different share of Islamic banking: a VAR analysis

Autori
Benazić, Manuel ; Karagianni Ladašić, Ines

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Proceedings of the 64th International Scientific Conference on Economic and Social Development / Cingula, M. ; Mišević, P. ; Nedzhad, A. - Varaždin : Koprivnica : Varšava : Rabat : Čakovec : VADEA ; Sveučilište Sjever, 2021, 46-59

Skup
64th International Scientific Conference Economic and Social Development (ESD 2021)

Mjesto i datum
Online, 22.01.2021

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
conventional banking, Islamic banking, macroeconomic shocks, macroeconomic stability, VAR analysis

Sažetak
There is a thinking that economic and financial systems based on Islamic banking and finance are more stable and resilient to macroeconomic shocks in relation to those based on conventional banking and finance systems. The assumption behind this thinking is that economic and financial systems based on Islamic finance, i.e. interest free cosmos, are more fitted to provide stability in times of crisis. Hence, the goal of this paper is to evaluate macroeconomic dynamics in three selected countries with different share of Islamic banking in order to detect possible similarities (or differences) between conventional and Islamic banking based financial systems. The analysis includes the following three countries: the United States of America with prevailing conventional banking system, the Islamic Republic of Iran with prevailing Islamic banking system and the Kingdom of Saudi Arabia with 50:50 ratio of both banking systems. For that purpose, we analysed the relationship between output, prices, money and the exchange rate by using the vector autoregressive (VAR) econometric framework. Obtained results show that there are no significant differences between conventional and Islamic banking based financial systems when relevant macroeconomic variable suffers a shock. These systems rather perform quite similar.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA