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The Challenges of Implementing Gold Dinar in Kelantan: An Empirical Analysis


  • Muhammad-Bashir Owolabi Yusuf

    () (Department of Economics,International Islamic University, Malaysia)

  • Gairuzazmi Mat Ghani

    () (Department of Economics,International Islamic University, Malaysia)

  • Ahamed Kameel Mydin Meera

    () (Department of Finance, International Islamic University, Malaysia.)


The purpose of this paper is to analyse the challenges of adopting the gold dinar as a currency in Kelantan, Malaysia. This is one of the earliest works to empirically investigate the challenges of using gold dinar currency since its introduction in Kelantan in August, 2010. The paper looks at both the internal and external challenges to the adoption of the new currency. The researchers came up with a model and a survey to validate the model. Structural equation modelling technique was employed to test if the data collected fits the model. It was found out that while the effects of both external and internal challenges were not statistically significant, they are significant in practical terms. All our measurement items were also found to be practical. Though the findings of the study indicate the challenges are not statistically significant, they nevertheless must be addressed if gold dinar is to be adopted in the future.

Suggested Citation

  • Muhammad-Bashir Owolabi Yusuf & Gairuzazmi Mat Ghani & Ahamed Kameel Mydin Meera, 2013. "The Challenges of Implementing Gold Dinar in Kelantan: An Empirical Analysis," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(3), pages 97-114, October.
  • Handle: RePEc:umk:journl:v:5:y:2013:i:3:p:97-114

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    References listed on IDEAS

    1. Eduardo Fernández‐Arias & Peter Montiel, 2011. "The Great Recession, “Rainy Day” Funds, And Countercyclical Fiscal Policy In Latin America," Contemporary Economic Policy, Western Economic Association International, vol. 29(3), pages 304-322, July.
    2. Peter J Montiel & Antonio Spilimbergo & Prachi Mishra, 2010. "Monetary Transmission in Low Income Countries," IMF Working Papers 10/223, International Monetary Fund.
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    More about this item


    Adoption; External and Internal Challenges; Gold dinar; Kelantan.;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity


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