Abstract
This paper studies the relationship between social capital on the green growth in Malaysia, with the aim of ascertaining whether faith based social capital has a role in sustaining economic growth. The study utilizes the annual data over the period of 1970-2015. This study employs the Auto-regressive Distributed Lag (ARDL) model and causality using the Vector Error Correction Model (VECM). The findings demonstrate the long and short-run associations between social capital and green growth in Malaysia. The causality only runs in a uni-direction from social capital to the green economic growth. The findings have important policy implications for green economic growth measurement to account for social well-being and to fulfill the objectives of Islamic Sharia.
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