Macroeconomic Indicators and Sukuk Market Performance in Selected OIC Economies
english
DOI:
https://doi.org/10.30993/tifbr.v15i2.282الملخص
Sukuk plays a critical role in developing Islamic finance globally. Therefore, it is important to identify macroeconomic determinants that drive the sukuk market. The study investigates the relationship between macroeconomic indicators and sukuk market performance for the period 2004 until 2019 in 10 sukuk issuing countries using a panel data approach. The macroeconomic indicators are Gross Domestic Product (GDP), consumer price index, trade openness, exchange rates, and financial crisis. The findings reveal that GDP, trade openness, and exchange rates have a significant impact on sukuk market performance. In addition, the study analyses the growth components of GDP in these countries five years before the Covid-19 pandemic outbreak. The countries' performance in terms of changes in percentage contribution of consumption, investment, government spending, and net export, towards GDP growth, is measured. The findings indicate that the consumption component contributes the most to economic stability. Therefore, the authorities can implement policies that would support productive consumption and design trade policies that will enhance sukuk market performance.
Keywords: Sukuk, Macroeconomic Indicators, Islamic Bond, GDP Decomposition
التنزيلات
منشور
كيفية الاقتباس
إصدار
القسم
الرخصة
الحقوق الفكرية (c) 2022 Author and Publisher
هذا العمل مرخص بموجب Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Tazkia Islamic Finance and Business Review (TIFBR) is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website), as it can lead to productive exchanges, as well as earlier and greater citation of published work (See the Effect of Open Access).
