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The Relationship between Islamic Microfinancing, Energy Supply Adequacy and Performance of Agriculture Microenterprises

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  • Ruslan Rafiatul Adlin Mohd

    (Faculty of Business and Management, Universiti Teknologi MARA, Puncak Alam, Selangor, Malaysia)

  • Rashid Intan Maizura Abd

    (Faculty of Business and Management, Universiti Teknologi MARA Cawangan Melaka, Malaysia)

  • Shafiai Syahiru

    (Faculty of Business and Management, Universiti Teknologi MARA Cawangan Melaka, Malaysia)

  • Fianto Bayu Arie

    (Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia)

  • Yusof Azman Mohd.

    (Ministry of National Unity, Malaysia)

Abstract

Empowering microenterprises has been shown to be effective in alleviating poverty and raising income. It is extremely effective in all nations when combined with the promotion of Islamic microfinance. Agriculture microenterprises focus on fisheries and aquaculture, agriculture trade, food, and other agriculture-related companies. Islamic microfinance plays a critical role in enhancing transaction circulation and agricultural community awareness of financial management because agricultural community income varies by season. From 2002 to 2022, this study looks into the factors that influence Islamic microfinance, energy supply sufficiency, and the performance of agriculture microenterprises in Malaysia. It uses a concurrent model of Islamic microfinance, energy supply adequacy, and a set of measures related to agriculture microenterprises sector performance that are deemed to be important in terms of supply chain linkages and raw material access. The data indicate that the goal of descriptive analysis is to clarify the generous condition for all variables involved in the study. Four analyses have been carried out. The first step is descriptive analysis. Then, the normality Test, and the third is the Correlation Analysis. Finally, the regression analysis will be used to estimate the relationship between the dependent and independent variables. Based on the simultaneous relationship, the study yields positive and negative results. The findings suggest that the performance of Malaysian agricultural microenterprises is more affected by Islamic microfinance, according to a causality analysis.

Suggested Citation

  • Ruslan Rafiatul Adlin Mohd & Rashid Intan Maizura Abd & Shafiai Syahiru & Fianto Bayu Arie & Yusof Azman Mohd., 2025. "The Relationship between Islamic Microfinancing, Energy Supply Adequacy and Performance of Agriculture Microenterprises," Economics, Sciendo, vol. 13(2), pages 55-69.
    • Handle: RePEc:vrs:econom:v:13:y:2025:i:2:p:55-69:n:1003
    DOI: 10.2478/eoik-2025-0030
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    References listed on IDEAS

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    1. Adom, Philip Kofi & Adams, Samuel, 2020. "Decomposition of technical efficiency in agricultural production in Africa into transient and persistent technical efficiency under heterogeneous technologies," World Development, Elsevier, vol. 129(C).
    2. Zoran Mastilo & Anđelka Štilić & Dejan Gligović & Adis Puška, 2024. "Assessing the Banking Sector of Bosnia and Herzegovina: An Analysis of Financial Indicators through the MEREC and MARCOS Methods," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 13(1), pages 167-197.
    3. Irza Hanie Abu Samah & Intan Maizura Abd Rashid & Wan Ahmad Fauzi Wan Husain & Suraiya Ibrahim & Hariri Hamzah & Mohammad Harith Amlus, 2020. "The Impact of Healthcare Expenditure and Healthcare Sector Growth on CO2 Emission using Dynamic Panel Data System GMM Estimation Model during COVID 19 Crisis," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 235-241.
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    Keywords

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    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General

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