Title: Islamic finance development and economic growth nexus: a review

Authors: Hassanuddeen Abdul Aziz; Osman Sayid Hassan Musse; Abdelghani Echchabi

Addresses: Department of Finance, Faculty of Economics and Management Sciences, International Islamic University Malaysia, Jalan Gombak, 53100, Kuala Lumpur, Malaysia; School of Business, Effat University, Jeddah 22332, Saudi Arabia ' Faculty of Economics and Muamalat, Islamic Science University of Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia ' School of Business, Effat University, Jeddah 22332, Saudi Arabia

Abstract: The purpose of this study is to critically analyse the literature on Islamic finance development and economic growth globally, and to draw implications to be considered for the subsequent studies in this area. The study is based on extensive critical review of the existing literature on Islamic finance development and economic growth. The findings indicate that the studies in the area of Islamic finance development and economic growth nexus are still scarce, and the existing studies have amounted to contradicting results with lack of concrete policy implications. Furthermore, many of the studies covered a short time span for long-run trends, which requires further studies to be conducted in this area. The current study is one of the earliest to comprehensively review the literature of the nexus between Islamic finance development and economic growth worldwide.

Keywords: Islamic banking; Islamic finance; economic growth; literature review.

DOI: 10.1504/IJIMB.2015.071774

International Journal of Islamic Marketing and Branding, 2015 Vol.1 No.2, pp.131 - 141

Received: 23 Mar 2014
Accepted: 17 Jul 2014
Published online: 18 Sep 2015 *

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