The Role of Sukuk in the Economic Growth of Islamic Countries: An Approach to the Absorption of Liquidity Available in Iran

Iranian Journal of Accounting, Auditing and Finance

مقاله 2، دوره 8، شماره 2 - شماره پیاپی 27، مرداد 2024، صفحه 23-38   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2024.42948.1232

نویسندگان

Javad Mohammadi¹؛ Ahmad Ghasemzadeh Khosroshahi^{* 1}؛ Maryam Khalili Araghi²

¹Financial Engineering Management Tabriz Azad University Tabriz Iran

²University of scientific research Faculty member, Azad University, Tehran, Iran

چکیده

Capital is considered the engine of economic growth and development in all economic growth theories and models. Therefore, providing direct financing and attracting enough capital to implement economic plans is one of the most critical concerns of economic decision-makers in every society. By understanding this issue, compilers of Iran's economic development programs have stated that one of the crucial goals in the country is to provide the necessary grounds for developing monetary and financial markets. Currently, there are many financing tools in the world, most of which cannot be used in Islamic societies due to their nature of usury. The data from 2001 to 2018 for selected countries were extracted from WDI, ICRG, and IIFM databases and analyzed through the econometric method. The results showed a positive and significant effect of Sukuk issuance on the economic growth of Islamic countries. In the end, implications were made to attract liquidity using this tool. In Iran, the role of Sukuk on economic growth has not been investigated, and the critical point is that in this research, the data related to economic risk and political risk have been used and simultaneously, along with other variables, its effect on economic growth has been evaluated and analyzed.

کلیدواژه‌ها

Financial instruments؛ Sukuk؛ financing؛ Economic growth and development؛ Capital؛ Economic plans؛ Liquidity

مراجع

1. Abdi, M. and Drinogoorani, H. (2014). Comparative assessment of economic risk in the Islamic Republic of Iran. Parliament and Strategic Quarterly. 22(82), pp. 133–163 (In Persian).
2. Abdullah, N. and Nayan, M. A. (2020). Green Sukuk: Financing The Future To Sustainable Environment. International Journal Of Zakat and Islamic Philanthropy, 2(2), pp. 14-23.
3. Ali, H. (2020). Sukuk and International Financial Markets: Co-movement Dynamics. Capital University of Science and Technology, Islamabad. India
4. Aliakbari, F., Mirzapour Babajan, A., Akbarimoghadam, B. and Hadizadeh, A. (2022). The Effect of Islamic Financing on the Growth of Iran's Economic Sectors. Environmental Energy and Economic Research, 6(3), pp. 1-16. https://doi.org/10.22097/EEER.2022.328170.1242
5. Al-Raeai, A. M., Zainol, Z. and Rahim, A. K. A. (2019). The influence of macroeconomics factors and political risk on the Sukuk market development in selected GCC countries: A panel data analysis. Jurnal Ekonomi Malaysia, 53(2), pp. 199-211. https://dx.doi.org/10.17576/JEM-2019-5302-15
6. Hassanzadeh, A. and Ahmadian, A. (2012). Prediction of Sukuk issuance capacity in Iran. Islamic Financial Research. 1(2), pp. 57–87 (In Persian).
7. IIFM. (2018). Iifm Sukuk Report. (April). Manama, Kingdom of Bahrain
8. IIFM. (2020). Sukuk Report. July 2020. 9th edition. Manama, Kingdom of Bahrain
9. Khansari, R. (2014). Strengthening the capital of banks by using international Sukuk. Economic News. 146, pp. 76-80 (In Persian).
10. Khansari, R. (2017). The requirements of issuing currency bonds in Iran and its role in financial stability. The 28th Annual Conference on Monetary and Currency Policies, Structural Reforms for Financial Stability. Tehran. Iran. (In Persian)
11. King, R. G. and Levine, R. (1993a). Finance, entrepreneurship and growth theory and evidence. Journal of Monetary Economics. 32(3), pp. 513–542. https://doi.org/10.1016/0304-3932(93)90028-E
12. King, R. G. and Levine, R. (1993b). Finance and Growth: Schumpeter Might Be Right. The Quarterly Journal of Economics. 108(3), pp. 717–737. https://doi.org/10.2307/2118406
13. Lashkari, M. and Arjamandi, M. (2010). Investigating financing methods in the Islamic system with an emphasis on Sukuk. Quarterly Journal of Islamic Economics and Banking. 1(1), pp. 33-76. (In Persian)
14. Mohammadi, S., Tehrani, R. and Khansari, R. (2015). Determinants of international sukuk issuance and capacity estimation for the Iranian financial market. Journal of Money and Economy, 10(3), pp. 1-28. (In Persian)
15. Mousaviyan, S. A. (2016). Farming Sukuk and Masakat suitable financial tools for the development of Iran's agricultural sector. Quarterly Journal of Islamic Economics. 7(26), pp. 71-95. (In Persian)
16. Mousaviyan, S. A., Kavand, M. and Redadi, A. (2009). Mudarabah securities (sukuk); Izari is suitable for the development of Iran's export sector. Economic Essays. 7(13), pp. 145-171. (In Persian)
17. Naimi, M., Sohaili, K. and Karimi, M. (2018). Interrelationship between the development of Islamic financial instruments (sukuk) and economic growth. Scientific Research Quarterly of Islamic Economics. 19(73), pp. 217-238. (In Persian)
18. Orhan, ZH. Tirman, N. (2021). An Empirical Analysis Regarding the Effect of Sukuk Outstanding on Growth in Turkey: 2010-2019. Sosyoekonomi. 29(48), 229-247.
19. Said, A. and Grassa, R. (2013). The determinants of sukuk market development: does macroeconomic factors influence the construction of certain structure of sukuk? Journal of Applied Finance & Banking, 3(5), pp. 251-267.
20. Seifipour, R. (2010). Empirical study of the effect of the level of financial development on economic growth. Journal of Financial Studies. 1(5), pp. 33-52. (In Persian)
21. Smaoui, H. and Ghouma, H. (2020). Sukuk market development and Islamic banks ’ capital ratios. Research in International Business and Finance. 51(17), A. 101064. https://doi.org/10.1016/j.ribaf.2019.101064
22. Smaoui, H. and Nechi, S. (2017). Does sukuk market development spur economic growth? Research in International Business and Finance. 41(14), pp. 136–147. https://doi.org/10.1016/j.ribaf.2017.04.018
23. Tan, YL. Shafi, RM. (2021). Capital market and economic growth in Malaysia: the role of_sukūk and other sub-components, International Journal of Islamic Finance. 13(1), 102-117. https://doi.org/10.1108/IJIF-04-2019-0066
24. Thumrongvit, P., Kim, Y. and Pyun, C. S. (2013). Linking the missing market: The effect of bond markets on economic growth. International Review of Economics & Finance, 27(39), pp. 529-541. https://doi.org/10.1016/j.iref.2013.01.008
25. Wachtel, P. (2001). Growth and Finance: What do we know and how do we know it? International Finance, 4(3), pp. 335-362. https://doi.org/10.1111/1468-2362.00077
26. Wong, M. C. S. and Bhatti, W. I. (2019). Developing International Sukuk in East Asia: Implications from Hong Kong Sukuk. Journal of Asian Finance, Economics and Business. 6(4), pp. 9–17. https://doi.org/10.13106/jafeb.2019.vol6.no4.9
27. Yani, D. Kismawadi, ER. Rauf Nasution, IFA. Bahri, MI. (2022). The Effect of Sharia Share, Sukuk, Sharia Mutual Funds and Exchange on the National Economic Growth. Jurnal Bisnis dan Manajemen Islam. 10(1), pp. 33-56, https://dx.doi.org/10.21043/bisnis.v10i1.13395
28. Yuliani, I. Qizam, I. Nugroho, A. Muarrif, ZI. (2022). The Impact of Sukuk on The Country’s Economic Growth with Country Governance as a Moderating Variable, Journal of Islamic Economics. 6(1), pp. 135-148.