ISLAMIC FINANCIAL DEVELOPMENT, FDI AND ECONOMIC GROWTH IN MENA AND EAST ASIA AND THE PACIFIC: THEORETICAL ANALYSIS AND EMPIRICAL STUDY
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Abstract
The purpose of this paper is to study the interaction between Islamic financial development, FDI and economic growth. To do this, we are conducting regressions on simultaneous equation models for the region MENA and East Asia and the Pacific. First, we support a direct relationship between "Islamic financial development and economic growth". Next, our study highlights the indirect effects of Islamic financial development on economic growth through FDI. Finally, our results support significant effects of financial development in improving socio-economic conditions over the period 1990-2018.
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