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on Islamic Finance |
| By: | Komijani, Akbar (Asian Development Bank Institute); Taghizadeh-Hesary, Farhad (Asian Development Bank Institute) |
| Abstract: | The Islamic finance industry has grown substantially in Asia over the last 2 decades. The Muslim populations in different Asian countries, especially in Southeast Asia, are increasing. Rapid Muslim population growth and improving living standards may enhance the popularity of Islamic finance as a keen alternative to conventional financing mechanisms. In addition, investors from the Middle East and Asia are increasingly seeking to invest in products that are in line with their religious beliefs. The governments and financial authorities in several Asian countries have played active roles in promoting the development of Islamic financial markets in line with the efforts to boost investments and achieve sustainable funding to enhance economic growth by tapping the huge liquidity from oil- and commodity-producing countries. The ethical character and financial stability of Islamic financial products may increase their attraction. Islamic financial products have an ethical focus (notably excluding investment in alcohol and gambling) with a risk profile that appeals to wider ethically conscious investors. Given that in Islamic banking returns on investments are based on underlying economic activities and/or assets that structure the contractual relationship between transacting parties, it is possible to use the asset-based nature and risk-sharing aspects of Islamic finance for greater integration with the real economy and to improve the overall economic balance between the real and the finance sector. |
| Keywords: | islamic banking; Islamic finance; Muslim finance; Muslim banking; sukuk; mudarabah |
| JEL: | F30 G02 |
| Date: | 2018–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0853&r=all |
| By: | International Monetary Fund |
| Abstract: | A technical assistance (TA) mission on external sector statistics (ESS) was conducted in Beirut, Lebanon, during March 12–22, 2018, for the Da Afghanistan Bank (DAB).1 The mission took place at the request of the DAB and with strong support of the IMF’s Middle East and Central Asia Department. This mission is part of the Middle East Regional Technical Assistance Center (METAC) work program. The main objectives of the mission were to assist the DAB in improving the quality of the balance of payments and International Investment Position (IIP) by suggesting improvements in the statistical techniques and promoting the use of adequate source data. The main focus of the mission was on filling data gaps by developing new estimation methods based on existing and new data sources. |
| Keywords: | Middle East;Afghanistan, Islamic Republic of; |
| Date: | 2018–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:18/321&r=all |
| By: | Arief, Nugroho |
| Abstract: | This article describes Islamic economic thinking that is specifically related to the function of money according to Islamic economist Abu Ubaid (154-224 H). The rationale of Abu Ubaid listed in the Book of Al-Amwal is emphasizing justice as the main principle. Abu Ubaid views money as having 2 (two) functions, namely as a standard for exchange and media exchange which until now is still acceptable/relevant in the economy. |
| Keywords: | Islamic Economy, Justice, Money |
| JEL: | B1 |
| Date: | 2018–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90588&r=all |
| By: | Naendhy Sunaendy, Lilla Fadhilah |
| Abstract: | This paper aims to describe more deeply the understanding of Islamic bank financing. As a country that is predominantly Muslim, it should be expected that the presence of Islamic banks in Indonesia is something to be expected. A bank is an industry that operates in the field of trust, which in this case is a financial intermediary between debtors and creditors. Islamic banks function as intermediary institutions, which function to collect funds from the community and redistribute these funds to the people who need them in the form of financing. namely to collect funds from the community and redistribute these funds to the people who need them in the form of financing. Financing is the largest source of income for Islamic banks, but at the same time is the biggest source of risk for business operations. Therefore, these funds must be used correctly, fairly, and must be accompanied by bonds and clear conditions that are mutually beneficial for both parties. |
| Keywords: | Islamic banks, financing. |
| JEL: | K12 K40 |
| Date: | 2017–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90855&r=all |
| By: | Yildirim, Ramazan; Masih, Mansur; Bacha, Obiyathulla |
| Abstract: | Many Muslim individual and institutional investors seek to invest only in stocks that are compliant with the Shari'ah (i.e. Islamic law). Among others, Dow Jones addressed this demand and has developed their proprietary screening methodologies to identify Shari'ah compliant firms (SC). One key factor that distinguishes SC firms from their non compliant peers (SNC) is that the former is not allowed to cross the leverage threshold of 33%. Due to the restrictions imposed on them, it is expected that SC firms exhibit different capital structure compared to the SNC firms. The purpose of this initial comparative study is to analyze the most reliable debt determinants identified in the literature on both firm types. This study utilizes static panel data techniques on the sample consisting of SC and SNC firms from 7 countries and 7 industries over the years 2004–2014. Our study is inconclusive and it shows that most of the determinants do exhibit different effects among both firm types. Depending on the leverage measure, the effect of different independent variables on firms' capital structure varies. A uniform effect can be exerted for debt determinants profitability for both leverage measures, and growth opportunities, firm size and tangibility for market leverage only. Our robustness tests reveal that the impact of some debt determinants on firms leverage remains consistent. The coefficient sign and significance suggests, that the capital structure decision of both firm types, both are better explained by the Pecking Order Theory for book and by the Trade-Off Theory for market leverage, respectively. |
| Keywords: | Capital Structure; Leverage; Shariah Compliant; Shariah Screening; Trade-Off Theory; Pecking Order Theory |
| JEL: | C58 E44 G15 G32 |
| Date: | 2017–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90280&r=all |
| By: | Hina Binte Haq; Syed Taha Ali |
| Abstract: | Almost a decade on from the launch of Bitcoin, cryptocurrencies continue to generate headlines and intense debate. What started as an underground experiment by a rag tag group of programmers armed with a Libertarian manifesto has now resulted in a thriving $230 billion ecosystem, with constant on-going innovation. Scholars and researchers alike are realizing that cryptocurrencies are far more than mere technical innovation; they represent a distinct and revolutionary new economic paradigm tending towards decentralization. Unfortunately, this bold new universe is little explored from the perspective of Islamic economics and finance. Our work aims to address these deficiencies. Our paper makes the following distinct contributions We significantly expand the discussion on whether cryptocurrencies qualify as "money" from an Islamic perspective and we argue that this debate necessitates rethinking certain fundamental definitions. We conclude that the cryptocurrency phenomenon, with its radical new capabilities, may hold considerable opportunity which merits deeper investigation. |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1811.05935&r=all |
| By: | Ibrahim Abdullahi, Shafiu |
| Abstract: | Nigerian economy is very sensitive to happenings in the global crude oil market due to Nigeria dependence on the black gold. The recession Nigeria found herself in 2016 was mainly caused by the fall in the international price of crude oil. It is the same factor that also help to explain Buhari government massive borrowings to help close the gap in government budget since coming to power in 2015. In the years since independence, Nigerian economy has changed from its largely agrarian state of 1960s to an import depended mono-economy. Nigeria single most important export for more than forty years has remain crude oil. But, in the period since independence various economic models have been tested, as many as there were changes in governments. While the adaptation of some of these economic programs were domestically inspired, others were forced on Nigeria from the outside. The book provides a comprehensive account of Nigerian economy, taking into consideration the changes that have taken place in the last one decade. |
| Keywords: | Nigeria, Economy, Business, Investment, Politics, regional security, Boko Haram, Media, Gender, Islamic finance, Global trade |
| JEL: | A1 A2 F1 G0 H5 M2 M3 O1 O3 Q5 |
| Date: | 2018–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:91074&r=all |
| By: | Meilindawati, Rahayu Meilindawati |
| Abstract: | abstract Mudharabah agreement is different from the financing agreement in banking in general (conventional banking). Conventional banking in general offers financing by determining certain interest rates and returns on capital that mudharib has used for a certain period of time. However, the mudharabah contract does not specify a certain interest rate on mudarib which uses mudharabah financing, but requires that the mudarib provide profit sharing from the benefits obtained by mudharib. |
| Keywords: | Contract, Mudharabah, Banking |
| JEL: | K12 K4 K40 |
| Date: | 2017–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90867&r=all |
| By: | International Monetary Fund |
| Abstract: | At the request of the Republic of Uzbekistan authorities for technical assistance (TA) on external sector statistics (ESS), and with the support of the Middle East and Central Asia Department (MCD) of the International Monetary Fund (IMF), a mission from the IMF Statistics Department (STA) visited Tashkent from November 20 through December 1, 2017. This was the first TA mission on ESS since the Republic of Uzbekistan Presidential Order of September 12, 2017, “On Measures to Ensure the Accessibility and Openness of Economic and Financial Data for the Republic of Uzbekistan” was issued. |
| Keywords: | Middle East;Uzbekistan; |
| Date: | 2018–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:18/326&r=all |
| By: | Klyachko, Tatiana (Клячко, Татьяна) (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Avraamova, Elena (Авраамова, Елена) (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Loginov, Dmitriy (Логинов, Дмитрий) (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Polushkina, Elena (Полушкина, Елена) (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Semionova, Elena (Семионова, Елена) (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | Every year the Center of the Economics for Continuing Education of the Institute of Applied Economic Research of the Russian Presidential Academy of National Economy and Public administration monitors the youth labor market problems. This article uses fieldwork collected in the three regions of the Russian Federation in 2017 to explore the youth mobility. The aim of the investigation was a study of the characteristics of mobile lifestyle perceived by the youth. |
| Keywords: | Monitoring, youth employment, youth labor mobility |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:031839&r=all |
| By: | Mujahidin, Muhamad |
| Abstract: | This article describes the concept and analysis of potential sharia hotels in Indonesia. Using a phenomenological approach, this study concludes that sharia hotels have become part of the halal tourism industry and the need for Muslim communities in Indonesia in the future. |
| Keywords: | Hotel, Halal Tourism, Sharia Tourism, Sharia Hotel |
| JEL: | L83 N53 Q57 Z12 Z13 |
| Date: | 2018–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90819&r=all |
| By: | Klyachko, Tatiana (Клячко, Татьяна) (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Avraamova, Elena (Авраамова, Елена) (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Loginov, Dmitriy (Логинов, Дмитрий) (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Polushkina, Elena (Полушкина, Елена) (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Semionova, Elena (Семионова, Елена) (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | Every year the Center of the Economics for Continuing Education of the Institute of Applied Economic Research of the Russian Presidential Academy of National Economy and Public administration monitors the youth labor market problems. This article uses fieldwork collected in the three regions of the Russian Federation in 2017 to explore youth informal employment. The aim of the investigation was a study of the reasons and the consequences of youth informal job. |
| Keywords: | Monitoring, youth employment, informal job |
| JEL: | J62 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:101801&r=all |
| By: | Max Gillman (University of Missouri-St. Louis; IEHAS, Budapest; CERGE-EI, Prague) |
| Abstract: | The paper presents the welfare cost of inflation in a banking time economy that models exchange credit through a bank production approach. The estimate of welfare cost uses fundamental parameters of utility and production technologies. It is compared to a cash-only economy, and a Lucas (2000) shopping economy without leisure, as special cases. The paper estimates the welfare cost of a 10% inflation rate instead of zero, for comparison to other estimates, as well as the cost of a 2% inflation rate instead of a zero inflation rate. The zero rate is specified as the US inflation rate target in the 1978 Employment Act amendments. The paper provides a conservative welfare cost estimate of 2% inflation instead of zero at $33 billion a year. Estimates of the percent of government expenditure that can be financed through a 2% vs. zero inflation rate are also provided. |
| Keywords: | Euler equation, interest rates, inflation, banking, money demand, velocity, price-theoretic, marginal cost, productivity shocks, Great Recession |
| JEL: | E13 E31 E43 E52 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:1831&r=all |