Differential impact of adopting Islamic banking: A quasi-experimental approach

<p>This study examines the treatment effect of the adoption of Islamic banking system in Pakistan. Compared to traditional banks, the distinct involvement of Islamic banks in real trading, along with its risk-sharing attributes, necessitates an examination of whether these differences impact e...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Adil Saleem (13822021) (author)
مؤلفون آخرون: R.M. Ammar Zahid (22330792) (author), Judit Sági (5480141) (author)
منشور في: 2025
الموضوعات:
الوسوم: إضافة وسم
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author Adil Saleem (13822021)
author2 R.M. Ammar Zahid (22330792)
Judit Sági (5480141)
author2_role author
author
author_facet Adil Saleem (13822021)
R.M. Ammar Zahid (22330792)
Judit Sági (5480141)
author_role author
dc.creator.none.fl_str_mv Adil Saleem (13822021)
R.M. Ammar Zahid (22330792)
Judit Sági (5480141)
dc.date.none.fl_str_mv 2025-02-12T03:00:00Z
dc.identifier.none.fl_str_mv 10.1016/j.ribaf.2025.102793
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Differential_impact_of_adopting_Islamic_banking_A_quasi-experimental_approach/30338896
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Economics
Applied economics
Treatment effect
Quasi-experimental design
Islamic finance
dc.title.none.fl_str_mv Differential impact of adopting Islamic banking: A quasi-experimental approach
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p>This study examines the treatment effect of the adoption of Islamic banking system in Pakistan. Compared to traditional banks, the distinct involvement of Islamic banks in real trading, along with its risk-sharing attributes, necessitates an examination of whether these differences impact economic growth. We applied a novel quasi-experimental research design using the synthetic control method (SCM) to examine the incremental effect of Islamic banking adoption on economic growth from 1990 to 2022. Results confirm that the Islamic financial system contributed differentially to economic growth in Pakistan, compared to the control group (51 countries), in the post-adoption period. The counterfactual effect on economic growth is estimated to be between 23 % and 32 % compared to the countries where Sharia banking is absent. The results are consistent and robust to alternative analysis, SCM with additional covariates, and placebo tests. The results also provide crucial implications for countries and central banks to implement Sharia-based banking, complementing the United Nations’ Sustainable Development Goal 8.</p><h2>Other Information</h2> <p> Published in: Research in International Business and Finance<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.ribaf.2025.102793" target="_blank">https://dx.doi.org/10.1016/j.ribaf.2025.102793</a></p>
eu_rights_str_mv openAccess
id Manara2_76f344d8673f5ef11fb1c2f3426972b3
identifier_str_mv 10.1016/j.ribaf.2025.102793
network_acronym_str Manara2
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oai_identifier_str oai:figshare.com:article/30338896
publishDate 2025
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rights_invalid_str_mv CC BY 4.0
spelling Differential impact of adopting Islamic banking: A quasi-experimental approachAdil Saleem (13822021)R.M. Ammar Zahid (22330792)Judit Sági (5480141)Commerce, management, tourism and servicesBanking, finance and investmentEconomicsApplied economicsTreatment effectQuasi-experimental designIslamic finance<p>This study examines the treatment effect of the adoption of Islamic banking system in Pakistan. Compared to traditional banks, the distinct involvement of Islamic banks in real trading, along with its risk-sharing attributes, necessitates an examination of whether these differences impact economic growth. We applied a novel quasi-experimental research design using the synthetic control method (SCM) to examine the incremental effect of Islamic banking adoption on economic growth from 1990 to 2022. Results confirm that the Islamic financial system contributed differentially to economic growth in Pakistan, compared to the control group (51 countries), in the post-adoption period. The counterfactual effect on economic growth is estimated to be between 23 % and 32 % compared to the countries where Sharia banking is absent. The results are consistent and robust to alternative analysis, SCM with additional covariates, and placebo tests. The results also provide crucial implications for countries and central banks to implement Sharia-based banking, complementing the United Nations’ Sustainable Development Goal 8.</p><h2>Other Information</h2> <p> Published in: Research in International Business and Finance<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.ribaf.2025.102793" target="_blank">https://dx.doi.org/10.1016/j.ribaf.2025.102793</a></p>2025-02-12T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.ribaf.2025.102793https://figshare.com/articles/journal_contribution/Differential_impact_of_adopting_Islamic_banking_A_quasi-experimental_approach/30338896CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/303388962025-02-12T03:00:00Z
spellingShingle Differential impact of adopting Islamic banking: A quasi-experimental approach
Adil Saleem (13822021)
Commerce, management, tourism and services
Banking, finance and investment
Economics
Applied economics
Treatment effect
Quasi-experimental design
Islamic finance
status_str publishedVersion
title Differential impact of adopting Islamic banking: A quasi-experimental approach
title_full Differential impact of adopting Islamic banking: A quasi-experimental approach
title_fullStr Differential impact of adopting Islamic banking: A quasi-experimental approach
title_full_unstemmed Differential impact of adopting Islamic banking: A quasi-experimental approach
title_short Differential impact of adopting Islamic banking: A quasi-experimental approach
title_sort Differential impact of adopting Islamic banking: A quasi-experimental approach
topic Commerce, management, tourism and services
Banking, finance and investment
Economics
Applied economics
Treatment effect
Quasi-experimental design
Islamic finance