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1 – 5 of 5Syeda Arooj Naz and Saqib Gulzar
The impact of Islamic finance on economic growth is an ongoing debate. The purpose of this study is to empirically evaluate how the development of Islamic finance affects the…
Abstract
Purpose
The impact of Islamic finance on economic growth is an ongoing debate. The purpose of this study is to empirically evaluate how the development of Islamic finance affects the long- and short-run economic growth of Pakistan.
Design/methodology/approach
The institutional variables, Islamic banking development (IBD), Islamic bond market development (IBM) and Islamic stock market development (ISM), are considered as measures of Islamic financial development, and real gross domestic product (GDP) is taken as measurement proxy of economic growth. The quarter time series data from Q1:2006 to Q4:2021 is analyzed through Autoregressive distributed lag model, Bounds test, ECM and Pairwise granger causality test.
Findings
The findings of this study indicate that in the long run, there is a significant and positive correlation between IBD and ISM with the real GDP, though ISM negatively cointegrated with real GDP in the short run. In contrast, IBM and real GDP did not find cointegrated in the long run, though the relationship is significant but negative in the short run.
Practical implications
The findings highlight Islamic financial development in Pakistan can contribute to the country's economic development, and this can be achieved by improving the infrastructure, increasing skilled professionals, creating a favorable legal environment and ensuring financial sector stability. Investors can diversify their investments and mitigate risk by adding Islamic financial instruments to their portfolios.
Originality/value
This pioneering study simultaneously measures the cause and effect relationship between Islamic financial development indicators (Islamic banking, Islamic bond and Islamic stock) and economic growth in Pakistan.
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Muhammad Ahad, Saqib Farid and Zaheer Anwer
In the presence of informal sector in the country, designing an energy policy and the pursuit of higher economic growth become challenging for emerging economies. These economies…
Abstract
Purpose
In the presence of informal sector in the country, designing an energy policy and the pursuit of higher economic growth become challenging for emerging economies. These economies are usually resource starved, and the presence of underground economy leads to faulty estimates of energy demand. The authors explore the energy–growth nexus in the presence of underground economy for Pakistan, an emerging economy host to large informal sector and facing recurring energy crises.
Design/methodology/approach
The authors evaluate the impact of underground economy on energy demand in the presence of explanatory variables, including official gross domestic product (GDP), foreign direct investment and financial development. The authors first assess the influence of official economy on the consumption of energy. The authors investigate how energy consumption is influenced solely by underground economy. Finally, the authors evaluate the impact of true GDP on the energy consumption. The authors employ combined cointegration method of Bayer and Hanck (2013) and then apply vector error correction model.
Findings
The results reveal that official GDP, underground economy and true GDP positively and significantly affect energy consumption in both short and long run. Similarly, financial development as well as foreign direct investment enhance energy consumption. The authors find unidirectional causality between energy consumption and official GDP variables (OGDP → EC), underground economy (UE → EC) and true GDP variables (TGDP → EC) in the long run. The authors observe bidirectional causality in the short run between energy consumption and official GDP (OGDP ↔ EC) and true GDP (TGDP ↔ EC).
Originality/value
To the best of the authors' knowledge, no study examines the causal relationship of energy consumption and underground economy. Overall, the findings assist policymakers to consider and implement different energy-related policies considering the significant role of underground economy for energy consumption in Pakistan.
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Awais Ur Rehman, Saqib Farid and Muhammad Abubakr Naeem
Motivated by lack of empirical research on sukuk (Islamic bonds) defaults and factors influencing the credit risk in sukuk industry, the study investigates the impact of corporate…
Abstract
Purpose
Motivated by lack of empirical research on sukuk (Islamic bonds) defaults and factors influencing the credit risk in sukuk industry, the study investigates the impact of corporate governance (CG) practices and corporate social sustainability (CS) disclosures on default risk of Islamic bonds in an emerging market.
Design/methodology/approach
In the Malaysian context the authors use generalized method of moments (GMM) to examine the mitigating effect of CG structure and CS disclosures on distance to default (DD) of sukuk issuers.
Findings
The results show that although both CG and CS have a significant and positive relationship with distance to default, the contribution of CS to augment DD is higher. Moreover, different CG variables have a varied relationship with distance to default, while the association is positive for all three pillars of CS, videlicet economic, social and environmental sustainability.
Practical implications
The findings of the study hold important implications for issuers, subscribers and regulators in the sukuk industry.
Originality/value
Limited research investigates the relationship between CG, CS and default risk of Islamic bonds. In light of this, the study attempts to fill the theoretical void in literature by examining the relationship among the underlying variables.
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Michael Adu Kwarteng, Alex Ntsiful, Christian Nedu Osakwe and Kwame Simpe Ofori
This study proposes and validates an integrated theoretical model involving the theory of planned behavior (TPB), health belief model (HBM), personal norms and information privacy…
Abstract
Purpose
This study proposes and validates an integrated theoretical model involving the theory of planned behavior (TPB), health belief model (HBM), personal norms and information privacy to understand determinants of acceptance and resistance to the use of mobile contact tracing app (MCTA) in a pandemic situation.
Design/methodology/approach
This study draws on online surveys of 194 research respondents and uses partial least squares structural equation modeling (PL-SEM) to test the proposed theoretical model.
Findings
The study establishes that a positive attitude towards MCTA is the most important predictor of individuals' willingness to use MCTA and resistance to use MCTA. Furthermore, barriers to taking action positively influence resistance to the use of MCTA. Personal norms negatively influence resistance to the use of MCTA. Information privacy showed a negative and positive influence on willingness to use MCTA and use the resistance of MCTA, respectively, but neither was statistically significant. The authors found no significant influence of perceived vulnerability, severity, subjective norms and perceived behavioral control on either acceptance or use resistance of MCTA.
Originality/value
The study has been one of the first in the literature to propose an integrated theoretical model in the investigation of the determinants of acceptance and resistance to the use of MCTA in a single study, thereby increasing the scientific understanding of the factors that can facilitate or inhibit individuals from engaging in the use of a protection technology during a pandemic situation.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/OIR-10-2021-0533
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Gaurav Dawar, Michael J. Polonsky and Shivangi Bhatia
This paper aims to identify the corporate social responsibility (CSR) patterns of Indian manufacturing firms using a CSR index based on ISO26000 and India’s National Voluntary CSR…
Abstract
Purpose
This paper aims to identify the corporate social responsibility (CSR) patterns of Indian manufacturing firms using a CSR index based on ISO26000 and India’s National Voluntary CSR Guidelines.
Design/methodology/approach
A total of 121 manufacturing enterprises in the national capital region (NCR) were surveyed. The questions related to the involvement of CSR in business strategy, involvement in CSR planning, involvement in environmental activities, involvement in social activities, monitoring, evaluation and involvement in CSR, reporting and policy and deployment of CSR. A two-step cluster analysis using log-likelihood measures was used to identify groupings in the data set based on their performance across the seven issues.
Findings
The two distinctive segments identified adopted intermediate CSR activities, and one undertook advanced CSR activities.
Research limitations/implications
This study has several limitations. First, the survey data were drawn exclusively from medium-sized enterprises in the NCR. Second, all the indicators in the CSR index were equally weighted.
Originality/value
This paper contributes to the literature by grouping manufacturers’ CSR activities based on seven dimensions suggested in ISO26000 and India’s National Voluntary Guidelines. The results of this study can help managers, boards and regulators better understand CSR and identify ways to improve it further.
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