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The Impact of Jordan¡¯s Conventional and Islamic Banking Development Factors on Economic Growth

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  • Nafith Fayez AL-Hersh

Abstract

This study aimed to explore the impact of Jordan¡¯s Conventional and Islamic Banking Development Factors on Economic Growth during the period (2000-2015). A sample of four Islamic banks and eight conventional banks was tested. A group of statistical methods such as Multiple Regression, Correlation, Variance Inflation Factor (VIF), T-Test, were applied. The study found that there is significant different between the impact of Conventional and Islamic Banking Factors on RGDP attributed to Total Assets, Liquid Assets, Total Deposits and Total Facilities. In addition, Islamic banks had a much impact on Economic growth as compared to conventional banks. The study recommended the Islamic Banking Sector to introduce a new innovative financial instruments and tools to push the economic growth forward and to increase the investment opportunity and lead to higher contribution to Economic Growth in Jordan.

Suggested Citation

  • Nafith Fayez AL-Hersh, 2016. "The Impact of Jordan¡¯s Conventional and Islamic Banking Development Factors on Economic Growth," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(9), pages 148-155, September.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:9:p:148-155
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    References listed on IDEAS

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    3. World Bank, 2012. "The World Bank Annual Report 2012," World Bank Publications - Books, The World Bank Group, number 11845, April.
    4. Christopoulos, Dimitris K. & Tsionas, Efthymios G., 2004. "Financial development and economic growth: evidence from panel unit root and cointegration tests," Journal of Development Economics, Elsevier, vol. 73(1), pages 55-74, February.
    5. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 717-737.
    6. World Bank, 2012. "The World Bank Annual Report 2012," World Bank Publications - Books, The World Bank Group, number 11844, April.
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    Cited by:

    1. Khaled Zamer, 2018. "Islamic Banking: A New Approach for Financial Inclusion," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(7), pages 118-118, July.
    2. Mohammed Mahmoud Mantai & Izlin Ismail & Obiyathulla Ismath Bacha, 2025. "Impact of dual banking system liquidity creation on economic activity," Economic Change and Restructuring, Springer, vol. 58(3), pages 1-25, June.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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