Organization Of Islamic Cooperation Countries Research Articles

Islamic Finance and Environmental Sustainability: Empirical Insight from OIC Countries

Environmental degradation remains a significant global challenge, particularly in the Organization of Islamic Cooperation (OIC) countries. This study primarily examines the impact of Islamic finance, proxied by two indicators, namely Islamic financial assets and Islamic banking financing, and other variables including Gross Domestic Product (GDP), Foreign Direct Investment (FDI), urbanization, renewable energy adoption, and forest area, on CO2 emissions. This study revealed that Islamic financial assets had a negative impact on CO2 emissions, highlighting their importance in supporting green investments and sustainability. However, Islamic banking financing has little influence on emissions reduction, most likely due to carbon-intensive initiatives. Furthermore, GDP growth increases emissions, although FDI, urbanization, and forest areas help to lower them. These findings underscore Islamic finance's critical role in fostering sustainable development, as well as the necessity for better green Islamic financing policies in OIC member nations. The findings also provide important insights for policymakers working to balance economic growth with environmental sustainability in Islamic finance.

The Competitiveness and Export Performance of Indonesian Coffee in The Organization of Islamic Cooperation (OIC)

Since its establishment in 1969, the Organization of Islamic Cooperation (OIC) has served as a platform for Islamic countries worldwide to cooperate in various sectors, including economic, social, and cultural. One longstanding form of economic cooperation among OIC countries is in the field of trade. Indonesia, as one of the major producers and exporters of coffee, has engaged in coffee trade with OIC countries, and this cooperation has continued to the present day. This research aims to assess the competitiveness and export performance of Indonesian coffee to OIC using the Revealed Comparative Advantage (RCA) and Constant Market Share (CMS) methods. The results show that Indonesian coffee exports to OIC are competitive but have a declining growth rate. Meanwhile, the export performance of Indonesian coffee to OIC demonstrates good performance in following market distribution trends but shows shortcomings in meeting market preferences. Therefore, enhancing internal trade cooperation within OIC, partnering strategies with competing countries, and measures such as improving technology accessibility and evaluating responsive export policies are necessary.

DOES COVID-19 AFFECT SHARIAH COMPLIANT STOCK? EVIDENCE FROM SELECTED OIC COUNTRIES

This study aims to examine the movements of Islamic stock markets in ten selected OIC (Organization of Islamic Cooperation) countries in relation to Covid-19 cases, providing a comprehensive analysis of market behavior during the pandemic. The countries—Saudi Arabia, Pakistan, Bangladesh, Turkey, Indonesia, Oman, Qatar, UAE, Kuwait, and Bahrain—were chosen based on their large Muslim populations. Data was collected over a one-year period from January 1, 2020, to January 31, 2021, analyzing the relationship between Covid-19 cases and Islamic stock market indices. The study employed co-integration tests to identify long-term relationships and the Vector Error Correction Model (VECM) to explore short-run dynamics. The co-integration test results show a significant long-run relationship between Covid-19 cases and Islamic stock markets in most of the selected OIC countries. Specifically, the Shariah indices in Pakistan, Bangladesh, Turkey, Qatar, UAE, Kuwait, and Bahrain have a positive and significant relationship with Covid-19 cases. Conversely, Saudi Arabia, Indonesia, and Oman exhibit a negative long-term relationship with Covid-19 cases, suggesting a different market response. These results suggest that countries with diversified economies, particularly those relying on natural resources such as oil and agriculture, were more resilient during the pandemic. This study provides novel insights into the unique responses of Islamic stock markets in OIC countries during the pandemic, highlighting regional differences in market behavior and recovery. It suggests that despite the global economic downturn, OIC countries present attractive investment opportunities, particularly due to their swift recovery and resource-based economies, offering a robust portfolio for investors during crises.

Impact of Economic Crises on Banking Sector Performance- A Comparative Analysis of Conventional and Islamic Banks Across OIC Countries

This study investigates the impact of three significant economic crises—the Eurozone Debt Crisis (2010-2012), the COVID-19 Pandemic (2020-2021), and the Post-Pandemic Economic Recovery (2021-2022)—on the performance of conventional and Islamic banks in Organization of Islamic Cooperation (OIC) countries. Using a dataset of 4,381 observations from 34 OIC countries, panel regression techniques are employed to evaluate the influence of these crises on key financial performance metrics: Return on Shareholders' Funds (ROSF), Profit Margin (PM), Return on Total Assets (ROA), Current Ratio (CR), and Solvency Ratio (SR). The analysis reveals that while the Eurozone Debt Crisis did not significantly affect bank performance, the COVID-19 pandemic led to a notable decline in profitability but an improvement in liquidity. The results highlight that during the COVID-19 pandemic, banks faced substantial challenges in maintaining profitability, as evidenced by the significant decrease in PM. However, the improvement in CR suggests that banks enhanced their liquidity management strategies to cope with the crisis. The Post-Pandemic Economic Recovery phase brought positive changes in both profitability and liquidity, demonstrating the ability of banks to adapt and thrive as economic conditions stabilized. Macroeconomic variables, such as GDP growth and inflation, played crucial roles, with GDP growth positively affecting ROSF and inflation negatively impacting PM. These findings underscore the importance of a diversified banking system, including both conventional and Islamic banks, to enhance financial stability. Policymakers and financial regulators should consider the unique strengths of Islamic banking principles in regulatory frameworks and prioritize sound macroeconomic policies to promote stability and resilience in the banking sector. Future research should further explore the long-term impacts of economic crises on bank performance across different regions and banking models, as well as the interaction between regulatory environments and bank resilience. Keywords: Economic crises, bank performance, conventional banks, Islamic banks, OIC countries, COVID-19 pandemic, Eurozone Debt Crisis, post-pandemic recovery, financial stability, macroeconomic factors.

Assessing the Economic Contributions of Islamic and Conventional Banks in Asian OIC Countries

This study explores the differential impacts of Islamic and conventional banks on economic growth within Asian member countries of the Organization of Islamic Cooperation (OIC). Utilizing a dataset of 1,846 observations from eight OIC countries, panel regression techniques are employed to assess the effects of these banking models on key economic growth indicators: GDP growth and GDP per capita growth. The analysis reveals that Islamic banks have a significantly greater positive impact on both GDP growth and GDP per capita growth compared to conventional banks. The findings highlight that Islamic banking principles, such as risk-sharing and asset-backed financing, contribute to a more stable and inclusive financial environment, enhancing overall economic development. The results underscore the importance of promoting Islamic banking alongside conventional banking to foster sustainable economic growth. Policymakers and financial regulators should consider incorporating the strengths of Islamic banking into regulatory frameworks to improve financial stability and resilience. Future research should investigate the long-term impacts of Islamic and conventional banking on economic growth across different regions and economic conditions, as well as the interplay between regulatory environments and financial sector performance.

Economic growth and sustainable development: evidence from OIC countries

Purpose This paper aims to examine the dynamic relationship between economic growth and sustainable development, integrating the Environmental Kuznets Curve (EKC) in 22 Organization of Islamic Cooperation (OIC) member countries across income groups. Design/methodology/approach Using annual data between 1990 and 2022, the authors apply the cross-correlation coefficient (CCC) approach of Narayan et al. (Economic Modeling, 2016, 53, 388–397) to examine the lead/lag relationship between GDP per capita and sustainable development. This study further validates the findings through a panel Granger causality test and a fixed panel regression model. Findings This research provides evidence of a U-shaped EKC for only 1 out of 22 (5%) OIC countries. For 13 out of the 22 (59%) OIC countries, increasing income growth is expected to enhance sustainable development in the future. The results show that as income levels rise, there will be a more significant decline in sustainable development for high-income OIC countries in the future than for both middle-income groups, contradicting the EKC hypothesis. The findings from the panel Granger causality and panel regression models also support the CCC results. Originality/value This study proposes a reverse version of the EKC hypothesis and contributes to the literature on economic growth and environmental sustainability. With increasing economic growth, the results can assist OIC member governments and policy-makers in designing tailored policies and practical measures for future sustainable development.

Industrialization Dynamics in Organization of Islamic Cooperation (OIC) Countries: Evidence from the Club Convergence Approach

The primary objective of this study is to scrutinize the industrialization patterns across 36 member states of the Organization of Islamic Cooperation (OIC) spanning from 1990 to 2021, adopting a club convergence approach. This study employed the Competitive Industrial Performance (CIP) index developed by the United Nations Industrial Development Organization. The CIP index serves as a yardstick for assessing countries’ effectiveness in manufacturing and exporting industrial goods, facilitating comparisons of industrial competitiveness across nations. The empirical findings derived from the convergence methodology established by Phillips & Sul (2007, 2009) unveiled the absence of convergence in CIP among OIC countries yet delineate the existence of four distinct convergence clusters. Notably, the CIP scores of countries exerted a significant influence on the formation of these clusters, with member states within the same cluster exhibiting comparable CIP performances. This outcome underscored the persistent dual structure characterizing the OIC panel, wherein nations with lower CIP standings failed to converge toward those with higher performance levels.

Economic freedom and its subcomponents: effects on Islamic bank performance

PurposeThis paper aims to examine the profitability of Islamic banks benefits from economic freedom and its subcomponents.Design/methodology/approachThis study uses a sample of 41 Islamic banks from the Organization of Islamic Cooperation (OIC) Countries selected from 2010–2020. It conducts an empirical approach based on the System Generalized Method of Moments (SGMM).FindingsOverall, economic freedom has a substantial impact on the profitability of Islamic banks. We then investigate the relationship between the subcomponents of economic freedom and the profitability of Islamic banks. The study’s breakdown components suggest that financial and investment freedoms are favorable indicators, while business and monetary freedoms have a negative effect.Practical implicationsThis research can serve as a guideline for Islamic bank management in terms of maintaining performance. The results of this study provide policy implications for the government to offer friendly regulations for economic actors to engage in financial transactions by looking at the economic freedom sub-component.Originality/valueTo the best of the authors' knowledge, the study of the role of economic freedom in Islamic banking performance is limited, particularly in the context of OIC Countries.

The Nexus Between Financial Inclusion and Economic Growth in The Organization of Islamic Cooperation (OIC) Countries

This study aims to examine the relationship between financial inclusion and economic growth in 22 OIC countries from 2005-2018 using a panel regression model, especially the REM model. There are three financial inclusion indicators as independent variables considered in this research: the financial inclusion index, the financial outreach index, and the financial usage index. We use GDP per capita as a proxy measure for economic growth. Using a random effect model (REM), our empirical results show that financial inclusion positively and significantly affects national economic growth in OIC countries. It is proven by all the proxy variables of financial inclusion, i.e., the financial inclusion index, financial outreach index, and financial usage index, positively correlate with the GDP per capita as a proxy for national economic growth. Other empirical results from control variables show that inflation is found significant to decrease OIC's economic growth. Trade also has significant effects on economic growth in OIC countries. Besides, in this study, unemployment has positively effects to increase economic growth in OIC countries. The main hypotheses in this study are accepted. Therefore, it could be concluded that financial inclusion positively contributes to increasing economic growth in Muslim countries. Furthermore, this finding will implicate the government to enhance and promote financial inclusion programs massively and provide access to financial services formally, such as insurance, saving, or credits/financing for the underprivileged community, especially for SMEs in all rural areas in OIC countries.

Human rights and value of cash: Evidence from Islamic and non-Islamic countries

This study examines whether and how human rights (HR) have bearings on the value of cash. Given the positive effect of HR improvement on corporate governance (CG) and that of CG on cash value, HR should positively affect cash value through CG. Using 23 Organization of Islamic Cooperation countries and 88 other countries during the period 1995–2019 as the sample, this study finds that the value of cash and excess cash is lower in Islamic countries than in other countries. Additionally, HR have a positive effect on cash value, but this effect is weaker for Islamic countries than for other countries. Furthermore, economic development (ED) (rule of law (RL)) reinforces the positive effect of HR on cash value, and this effect is stronger (weaker) for Islamic countries than for other countries. Study results provide important implications. Given the observed striking differences in results between Islamic and other countries, future related research should consider them to improve validity and reliability of empirical results. Multinationals or firms that consider establishing subsidiaries in foreign countries should also consider country-specific factors, like types of countries, HR, ED, and RL, because they may affect the agency and external financing costs. Furthermore, national governments can evaluate the effectiveness of HR promotion by referring to the study results regarding HR's positive effect on cash value such that they can fine tune their HR and economic policy as well as enforcement of RL to better achieve their intended goal of improving HR and CG.

Dynamic leverage policy in Islamic and conventional banks during crises in the OIC countries: a procyclicality and prospect-theory analysis

Purpose The purpose of this study is to investigate and compare the dynamic leverage policies of Islamic and conventional banks within selected Organization of Islamic Cooperation (OIC) countries. The study specifically focuses on the concepts of leverage procyclicality and prospect theory. Design/methodology/approach To achieve the research objectives, the study uses data from three distinct periods: Crisis I (2007–2009), Crisis II (2011–2012) and Crisis III (2020). The analysis uses dynamic panel-data regression, using the generalized method of moments (GMM) technique. Findings The research findings indicate that both Islamic and conventional banks demonstrate leverage procyclicality. Interestingly, Islamic banks exhibit weaker leverage procyclicality during normal conditions but display stronger procyclicality during crises compared to their conventional counterparts. The application of prospect theory reveals that both bank types exhibit risk-taking or risk-averse behavior through leverage under certain financial and market performance measures as the first-level domain of the gain-vs-loss condition. Furthermore, during crises (as the second-level domain of the normal-vs-crisis condition), both Islamic and conventional banks experience heightened leverage. Notably, Islamic banks, owing to their lower risk exposure and greater shock resilience, demonstrate lesser risk-taking behavior through leverage than conventional banks, both during periods of underperformance and worsening conditions amid crises. These findings validate the extension of prospect theory's applicability in a two-level domain perspective. The dynamic nature of leverage policy, being procyclical and adhering to prospect theory, also varies following different crises specifically. Research limitations/implications The study's limitations include the unequal crisis periods (Crises I, II and III), leading to an imbalanced examination of their effects, certain financial and market performance metrics that fail to corroborate the expected hypotheses and the limited generalizability of findings beyond the selected OIC countries. Practical implications Understanding the intricate dynamics and behavioral aspects of leverage policy for both Islamic and conventional banks, particularly during crisis scenarios, proves crucial for reviewing banking regulations, making informed financial decisions and managing risks effectively. Originality/value This study enriches the current knowledge by presenting two key points. First, it highlights the dynamic nature of leverage procyclicality in Islamic banks, showing a change from weaker procyclicality in normal conditions to stronger procyclicality during crises compared to conventional banks. Second, it expands the application of prospect theory by introducing a dual-level domain context. Examining the comparative leverage policies of Islamic and conventional banks during different crises within OIC countries provides novel insights into leverage procyclicality and behavioral responses.

Training of Imams, Murshidat and Muslim Religious Leaders: Experiences and Open Questions—An Overview of Italy

Muslims in Italy are an increasingly large and relevant part of the social fabric, although their social condition is still characterized by a “precarious” status. This is explained by a relationship with State institutions that is not yet fully defined in formal terms and by resistance to legitimizing their presence in the public space. In addition, international events have led to the spread of a securitarian political rhetoric and to the intensification of “control” devices on the organized forms and public manifestations of Muslim religiosity. One issue that has concerned political interlocutors has been the training of “imams”. This paper presents the Italian case of training “on” and “of” Islam, analyzing it as a contested field, albeit in a not open and hostile form, between the different social and institutional actors, that is Italian universities, Islamic organizations and transnational Islam and Islam “of the States”. It then analyzes the approach that has been developed and experimented by an Italian State university for the training of imams and murshidat, in collaboration with Italian Islamic organizations and some universities in the Organization of Islamic Cooperation countries, and it also discusses how it fits in as a possible innovative model among the various “assemblages” that have emerged in Europe in recent years.

Gravity model of trade approach: what drives Indonesia’s seafood export and its halal market potency in OIC (Organization of Islamic Cooperation) countries

PurposeThis study aims to unveil the variables that drive Indonesia’s seafood exports to organization of Islamic cooperation (OIC) countries, including a deeper analysis to understand the factors that affect Indonesia’s potential for halal seafood exports, and attempts to validate Linder’s hypothesis, which might occur as part of the determinants of Indonesia’s seafood exports, as well as one of the variables that can affect Indonesia’s potency of halal seafood exports based on economic scale similarities and relative factor endowments.Design/methodology/approachUsing Poisson regression by pseudo maximum likelihood, this study applies the theory of trade gravity and Linder’s hypothesis of Indonesia’s seafood exports to OIC countries and its halal market potency over the 30 years observation period from 1992 to 2021, with 47 countries importing Indonesia’s seafood products during the observation period based on United Nations Comtrade statistics.FindingsThe variables that drive Indonesia’s seafood exports are the situation of the economy between Indonesia and its trading partners, the population of importing countries and the common understanding of language. On the other hand, the adjusted-Muslim GDP of importing countries, the adjusted-Muslim GDP of Indonesia and the number of Muslim inhabitants of importer countries are the factors that affect Indonesia’s potential for halal seafood exports. The study also validates the presence of Linder’s hypothesis in Indonesia’s seafood export and could hint Indonesia’s potential for halal seafood exportsResearch limitations/implicationsOwing to the absence of an Harmonized System code that explicitly accommodates trade in halal commodities, especially in halal seafood exports, it will be more accurate if data are available in the future as material for further studies. Future studies may also consider per capita consumption of seafood, food safety standards and the level of food security from OIC countries as variables that might also influence Indonesia’s seafood exports in an approach analysis using the gravity theory of trade.Practical implicationsThis study is part of the authors’ efforts to encourage a greater contribution of the fisheries sector to Indonesia’s GDP by identifying the factors that drive seafood exports, which have so far only been around 2%–3% and have never reached more than 4% in the past two decades. While Indonesia is blessed with extraordinary marine biodiversity and hopes of being the leader of the halal food industry, the fisheries sector is expected to contribute.Originality/valueUnlike previous studies that used the approach of the gravity model of trade on food exports, this study is specifically in the field of seafood exports, takes Indonesia as the main object of research and also examines Linder’s hypothesis as part of the analysis to identify what drives Indonesia’s seafood exports in the OIC countries market and fill the scant of studies highlighting the factors that could drive halal food exports, specifically in seafood.

Current Status of Neurorehabilitation Services in the OIC Countries: Results of an International Online Survey

Objectives: Neurorehabilitation services are not widely available to most persons with disability (PWD) in the Organization of Islamic Cooperation countries. This study aimed to document status of neurorehabilitation services in OIC countries. Study Design and Setting: Cross-sectional online survey. Methods: Self-administered online survey conducted using Google Forms. Key resource persons for each OIC country working in field of neurorehabilitation were identified from various databases. The questionnaire was emailed to 20 identified resource persons. The response rate was 60% (12/20). Results: Neurorehabilitation services were available in 9 out of 12 surveyed countries. Only 2 countries reported providing access to neurorehabilitation services to 76-100% of their population. Five countries reported less than 25% of population had access to these services. Most commonly available neurorehabilitation services included services for stroke, spinal cord injury, pediatric neurorehabilitation, brain injury, and neuromuscular rehabilitation. Three countries had none of these specialized services. Five countries had neurorehabilitation training programs for physicians and other rehabilitation professionals. Patients had to pay out of pocket for these services in most of surveyed countries, followed by public funding and private insurance. Tele-neurorehabilitation and local disease-specific neurorehabilitation guidelines were not available in most of surveyed countries. Conclusion: Neurorehabilitation services in OIC region are not widely available, with significant variability in availability and quality. There is a need to develop and improve these services. Sharing knowledge and expertise through various forms, such as exchange visits and online sessions, can help improve neurorehabilitation services in these countries

Financial inclusion and sustainable development of banks: the place of organization of Islamic cooperation (OIC) in emerging markets

PurposeThis study examines the impact of financial inclusion on the corporate sustainability of banks in both Organization of Islamic Cooperation (OIC) and non-OIC emerging economies, considering the COVID-19 pandemic.Design/methodology/approachThe research utilizes data from 3,159 bank-years from 2007 to 2021 across 33 emerging markets.FindingsEmpirical findings indicate that firms operating in higher financial inclusion developing countries tend to exhibit higher levels of sustainable development. This positive relationship has become even more pronounced during the COVID-19 pandemic, suggesting the importance of financial inclusion in fostering corporate sustainability, especially in times of economic challenges. Interestingly, while the positive correlation between financial inclusion and sustainable development remains consistent across both OIC and non-OIC countries, firms in OIC countries do not show significant changes during the pandemic.Practical implicationsThis observation suggests that the pandemic’s impact on corporate sustainability may vary between the two groups of countries. This study highlights the significance of financial inclusion in promoting corporate sustainability in developing economies. In times of recessions when accessing finance becomes expensive, policymakers in OIC countries should identify firms that adhere to Islamic principles, such as those sensitive to interest rates, and provide them with targeted support. This assistance can enable these companies to compete effectively and achieve their financial sustainability objectives.Originality/valueThere has been no attempt to investigate the effect of financial inclusion and the pandemic on the sustainable development of banks in developing countries.

Utilising AI-based Chatbot for Maximising Value and Profitability of Islamic Financial Institutions

global Islamic finance industry has experienced significant growth in recent years, establishing Islamic financial institutions (IFIs) as prominent players in the international financial landscape. To maintain competitiveness and sustainability, IFIs must embrace innovation and explore avenues for maximising their performance. This research aims to investigate the effect of AI-based Chatbots on the value and profitability of IFIs in Organisation of Islamic Cooperation (OIC) countries. The study has employed quantitative methodology, and the data was collected from the Bloomberg database, Thomson Reuters DataStream, World Development Indicators and annual reports of 104 IFIs across 44 OIC countries from 2020 to 2022. Employing the Generalised Method of Moments (GMM), this study investigates the impact of AI-based Chatbots on the value and profitability of IFIs. The findings show a positive impact of Chatbot on Return on Assets (ROA), Return on Equity (ROE), and Tobin’s Q (TBQ). Furthermore, the analysis reveals that variables such as Gross Domestic Product (GDP), institutional size (SIZE), and age (AGE) exhibit positive associations with the value and profitability of IFIs. Conversely, the study identifies Consumer Price Index (CPI) as exerting a negative influence on the value and profitability of IFIs, indicating potential challenges posed by inflationary pressures. IFIs may consider investing in the development and deployment of advanced AI technologies to enhance overall profitability. Keywords: AI-based Chatbot; Profitability; Islamic financial institutions (IFIs); OIC Countries; Dynamic GMM

Sustainable Investing and Islamic Finance: Evidence from the Organisation of Islamic Cooperation (OIC) Countries

Sustainable investing and Islamic finance have been two of the fastest-growing areas of finance. In Islamic finance, equity markets play an important role. In the literature on Islamic equities, there are relatively few studies that have integrated sustainability factors into Islamic finance. In this paper, our objective is to contribute to the line of research on the integration of sustainable investing into Islamic finance. To that end, we first examine the comparative performance of investing in the sustainability indices from those Organization of Islamic Cooperation (OIC) countries that are partners of the Sustainable Stock Exchanges (SSE) initiative. We then conduct a case study of Borsa Istanbul in Turkey, which has the best-performing sustainability index from OIC countries. Overall, our findings reveal the heterogeneity in sustainable investment performance, and suggest the potential of obtaining superior risk-adjusted returns in certain economies from OIC countries. This study draws implication on how sustainable investing can help bridge the gap between Islamic and conventional financial markets.

Corruption and Bank Risk‐Taking in Dual Banking Systems

ABSTRACTResearch Question/IssueWe investigate whether the risk‐taking of Islamic banks is affected differently by corruption compared to conventional banks. We also examine whether the characteristics of the Shari'ah Supervisory Board (SSB) of Islamic banks and the characteristics of the board of directors of conventional banks play an effective role in moderating such an effect.Research Findings/InsightsWe find consistent evidence that banks in countries with higher corruption have higher bank risk for both conventional and Islamic banks. However, this association is attenuated by the size of the SSB, the presence of female board members, and higher academic qualifications of SSB members. For conventional banks, the moderating effect of the presence of female directors and academically qualified members on the board of directors is also prevalent but to a lesser extent.Theoretical/Academic ImplicationsThis study contributes to the corporate finance literature more generally by highlighting the role played by corporate governance, particularly the presence of female members and academically qualified members on the SSBs of Islamic banks and on the board of directors of conventional banks, in mitigating the effect of corruption on bank risk‐taking for the two bank types.Practitioner/Policy ImplicationsOur findings are based on a matched sample of banks operating in 10 OIC (Organization of Islamic Cooperation) countries and have important implications for bank stability and bank governance reforms. On the detrimental side, urgency of the anti‐corruption campaigns in these countries is justified due to the significant effect of corruption on risk‐taking for both conventional and Islamic banks. Overall, to better fight corruption in countries with dual banking systems, there is a need to enforce stricter rules for all types of banks.

Bank Credit and Economic Growth: Evidence from OIC Countries

This study aims to explore the impact of bank credit along with three other independent variables, namely population, employment, and inflation, on economic growth in 55 Organization of Islamic Cooperation (OIC) member countries. The data used is annual panel data from 2010 to 2021, obtained from SESRIC OIC. The analysis method applied in this study is static panel data regression. The results show that each independent variable, such as population, employment, inflation, and total bank credit, has a significant effect both simultaneously and partially on the economic growth variable (GDP). Bank credit facilitates the efficient allocation of resources from savers to borrowers who have productive investment opportunities, thereby promoting economic growth. Second, banks act as an important channel in the transmission of monetary policy by providing financial intermediation, receiving and utilizing large amounts of public funds, and creating money supply. Third, bank credit expansion is associated with higher economic growth across industries, encouraging tangible investment but not intangible investment in more debt-dependent industries.

Examining the Efficiency of Stock Markets using Multifractal Detrended Fluctuation Analysis. Empirical Evidence from OIC (Organization of Islamic Cooperation) Countries during the GFC and COVID-19 Pandemic

Examining the Efficiency of Stock Markets using Multifractal Detrended Fluctuation Analysis. Empirical Evidence from OIC (Organization of Islamic Cooperation) Countries during the GFC and COVID-19 Pandemic