Islamic bank financing boosts Malaysia's economy, driving long-term growth and stability.
The research looked at how Islamic bank financing in Malaysia is related to economic factors like GDP, investment, trade, and inflation. They used different tests to see if these factors are connected in the long or short term. The results showed that Islamic bank financing is linked to GDP and trade in the long run, and to foreign investment and inflation in the short term. However, there is no long-term connection between Islamic bank financing and fixed capital investment. These findings can be helpful for policymakers, investors, and the government.