The Impact of Islamic Financial Inclusion on Economic Growth in Asia: Evidence from Indonesia and Iraq

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Hurriah Ali Hasan
Saidin ansyur
Sabbar Dahham Sabbar
Omer Mohamed Taha Alkanan
Muryani Arsal
Hasyim mohammad
Amro halfaoui


This study examined the relationship between Islamic financial inclusion and economic development in Indonesia and Iraq using panel data from 2000 to 2014. The study used variables such as GDP per capita growth, education, inflation, government consumption, trade openness, domestic credit, loans by Islamic financial institutions, the rule of law, and regulatory quality. The findings showed significant variation across countries and periods regarding economic development, education, and the adoption of Islamic finance. Correlation analysis revealed both positive and negative relationships between the variables. Panel unit root and cross-sectional dependency tests highlighted the need for advanced methods to analyze panel data. Panel co-integration tests suggested evidence of a long-term relationship between Islamic financial inclusion and economic development. The FMOLS estimators demonstrated the significance and direction of the relationships. The study provided insights into the role of Islamic financial inclusion in promoting economic development in Indonesia and Iraq, emphasizing the potential benefits of integrating Islamic finance into the financial systems of these countries.


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Hasan, H., ansyur, S., Dahham Sabbar, S., Taha Alkanan, O., Arsal, M., mohammad, H., & halfaoui, A. (2024). The Impact of Islamic Financial Inclusion on Economic Growth in Asia: Evidence from Indonesia and Iraq. UCJC Business and Society Review (formerly Known As Universia Business Review), 21(80). Recuperado a partir de
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