Sukuk and Endogenous Growth in Indonesia: Generalized Method of Moments Approach
- DOI
- 10.2991/agc-18.2019.95How to use a DOI?
- Keywords
- Sukuk, Financial Instruments, Endogenous Growth, GMM
- Abstract
This research analyzes the effect of sukuk and several financial instruments (stocks and bonds) on economic growth in Indonesia. The data is quarterly time series started from 2002 till 2017 using Generalized Method of Moments (GMM) analysis model. This model has ability to produce unbiased, consistent and efficient estimation even though in the model, endogenous variables and measurement error variables are existed. The results show that sukuk and bonds have positive and significantly affect (α <0.05) on economic growth (Gross Domestic Income per worker), but stocks and savings have negative and significantly effect on economic growth. Through these results, we know that economic growth in Indonesia effected by capital flow, and by supporting the number of Muslim populations in Indonesia, policy makers and stockholders (governments and corporate) could take these advantages promoting these instruments especially sukuk as means of funding for their business activities and developing purposes while keeping the performances and public trust on their instruments, furthermore governments and corporate could get fund for their business activities and developing purposes
- Copyright
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Junaidi Junaidi AU - Abd Jamal AU - Sofyan Syahnur PY - 2019/01 DA - 2019/01 TI - Sukuk and Endogenous Growth in Indonesia: Generalized Method of Moments Approach BT - Proceedings of the 1st Aceh Global Conference (AGC 2018) PB - Atlantis Press SP - 633 EP - 639 SN - 2352-5398 UR - https://doi.org/10.2991/agc-18.2019.95 DO - 10.2991/agc-18.2019.95 ID - Junaidi2019/01 ER -