Title: Islamic bank financing: finding the spatial effect and influencing factors from an archipelagic Indonesia

Authors: M. Arief Mufraini; Ahmad Tibrizi Soni Wicaksono; Kurniawati Meylianingrum; Mega Noerman Ningtyas; Supriyono

Addresses: Syarif Hidayatullah State Islamic University Jakarta, Jl. Ir. Juanda No. 95 Ciputat Raya 15412, Tangerang Selatan Banten Indonesia ' Maulana Malik Ibrahim State Islamic University Malang, Gejayana No. 50 Malang 65144, East Java Indonesia ' Maulana Malik Ibrahim State Islamic University Malang, Gejayana No. 50 Malang 65144, East Java Indonesia ' Maulana Malik Ibrahim State Islamic University Malang, Gejayana No. 50 Malang 65144, East Java Indonesia ' Syarif Hidayatullah State Islamic University Jakarta, Jl. Ir. Juanda No. 95 Ciputat Raya 15412, Tangerang Selatan Banten, Indonesia

Abstract: In the light of Islamic bank inclusiveness, this study aims to analyse more for spatial regions effect to identify influencing factors of financing. Secondary data from 33 provinces of Indonesia took a part to complete research analysis. The findings of the research reveal such a strong spatial influence on Islamic bank financing. Jakarta and West Java Province ultimately luxuriate high value of financing, but Banten Province enjoy only low value of financing although it surrounded by the high value neighbour provinces, and Papua Province suffer from Islamic bank financing and also surrounded by the low value ones. Then it is found that Indonesia has seven provinces included in the category of neighbour less namely the Provinces of West Nusa Tenggara, North Maluku, Maluku, East Nusa Tenggara, Bali, Bangka Belitung, and Riau Islands. And factors that affect geographical spatial concentration of Islamic bank financing are gross domestic product and deposit.

Keywords: spatial regression model; Islamic bank financing and archipelagic Indonesia.

DOI: 10.1504/IJEPEE.2020.106683

International Journal of Economic Policy in Emerging Economies, 2020 Vol.13 No.1, pp.36 - 51

Received: 13 Sep 2019
Accepted: 17 Oct 2019
Published online: 16 Apr 2020 *

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