Authors:
Fera Widyanata
and
Saadah Yuliana
Affiliation:
Sriwijaya University, Indonesia
Keyword(s):
Islamic Financing, Indonesia Sharia Stock Index (ISSI), Zakah Infaq and Sadaqah (ZIS), Economic Growth, GDP, Error Correction Model (ECM)
Abstract:
This research aims to analyze the effect of the short-run and long-run of Islamic Financing, Indonesia Sharia Stock Index (ISSI), and the distribution of Zakah, Infaq and Sadaqah (ZIS) on Economic Growth during the period 2011 to 2015. This research uses secondary data, it is a quarterly time series data with 24 quarterly observation period, since the first quarter of 2010 until the fourth quarter of 2015. The analysis techniques of this research is Error Correction Model (ECM). The result of the research shows that there is effect or an equilibrium between the short-run towards the long-run of the independent variable Islamic Financing on the dependent variable GDP. While the independent variable Indonesia Sharia Stock Index (ISSI) only gives long-run effect on the dependent variable GDP. Conversely, the independent variable Zakah, Infaq and Sadaqah (ZIS) only gives short-run effect on the dependent variable GDP. Thus, Islamic Financing and distribution of Zakah, Infaq and Sadaqah c
ontribute to the increase of economic growth in the short-run. Indonesia Sharia Stock Index (ISSI) and Islamic Financing contribute to the increase of economic growth in the long-run.
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