nep-isf New Economics Papers
on Islamic Finance
Issue of 2019‒07‒22
four papers chosen by

  1. Peluang dan Tantangan Financial Technologi Syariah di Indonesia By Mujahidin, Muhamad
  2. Inflation: islam and conventional economic systems By Putra, Adhitya
  3. Economic development through halal tourism By Nasihin Aziz, Athoillah
  4. How to use Stata's sem command with nonnormal data: A new nonnormality correction for the RMSEA and incremental fit indices, CFI and TLI By Wolfgang Langer

  1. By: Mujahidin, Muhamad
    Abstract: This article describes how the opportunities and challenges of FinTech Sharia in the face of the industrial revolution 4.0. By using a negation approach, this study concludes that FinTech Sharia which is the development of technological innovations that are in accordance with sharia provisions and becomes a solution to avoid interest transactions. The synergy between the Islamic financial sector and information technology innovation should also be a challenge as well as an opportunity for all actors in the Islamic finance industry to catch up with the conventional financial industry.
    Keywords: Financial Technology, FinTech, FinTech Sharia, Islamic Finance
    JEL: A10 E40 G21 G23 G30 O14 O32
    Date: 2019–07–04
  2. By: Putra, Adhitya
    Abstract: Abstract A country is seen as successful or not, in solving the economic problems of its own country can be seen from the country's macro and micro-economy. Macroeconomics is a study of activities that discuss the economy of a country. One of the macroeconomic indicators used to see/measure a country's economic stability is inflation. Changes in this indicator will have an impact on the dynamics of economic growth. In an economic perspective, inflation is a monetary phenomenon in a country where inflation fluctuations tend to result in economic turmoil. Inflation is a phenomenon where the general price level increases continuously. The price increase of just one or two items cannot be said to be inflation unless the increase extends or results in an increase in prices for other goods. Both the conventional economic system and the Islamic economic system, the roles of both demand and supply are emphasized in pricing. In fact, Islamic scholars are aware of centuries that the importance of demand and supply caused inflation. From the problems above this study uses qualitative methods to describe the related problems and is reinforced with secondary data in the form of journals, books, and related articles.
    Keywords: Keyword: Inflation, Islamic Economy, Conventional Economy
    JEL: D2 D3 E3 E63
    Date: 2019–07–02
  3. By: Nasihin Aziz, Athoillah
    Abstract: Tourism is a potential sector in the world. The increasing number of tourist destinations and investments has encouraged this sector to become a major factor in foreign exchange earnings, employment, and business and infrastructure development. At present, halal tourism (halal tourism) is becoming a world trend. This is in line with the increase in the number of Muslim tourists from year to year. This article will review the concept of halal tourism, potential, and halal tourism as an alternative to economic development.
    Keywords: halal tourism, potential, economic development
    JEL: L83 O10 Z10
    Date: 2019–07–03
  4. By: Wolfgang Langer (Martin Luther University of Halle-Wittenberg)
    Abstract: Traditional fit measures like RMSEA, TLI, or CFI are based on noncentral chi-square distribution assuming the multinormal distribution of the observed indicators (Jöreskog 1970). If this assumption has violated programs like Stata, EQS or LISREL calculate the fit indices using the Sattora-Bentler correction. It rescales the likelihood ratio chi2 test statistics of the baseline and the hypothesized model (Satorra & Bentler 1994, Newitt & Hancock 2000). Brosseu-Liard et al. (2012, 2014) and Savalei (2018) showed two results in their simulation studies with nonnormal data: First, they demonstrated that the ad hoc nonnormality corrections of the fit indices provided by the SEM software made the fit worse, better, or unchanged compared with their uncorrected counterparts. Second, the authors proposed new robust versions of RMSEA, CFI, and TLI that performed very well in their simulation studies. They systematically varied the sample size, the extent of misspecification, and nonnormality. Therefore, the same rules of thumb or criteria that are used for normal distributed data can be applied to assess the fit of the structural equation model. My robust_gof.ado ado-file stimates the robust RMSEA, CFI, and TLI fit measures using the corrections proposed by Brosseu-Liard et al. and Savalei. It also estimates a 90% confidence interval for the root mean squared error of approximation. robust_gof.ado can be executed after the sem command with the vce(sbentler) option and estat gof, stats(all) as a postestimation command by simply typing robust_gof. It returns the estimated fit indices and scalars as r containers. I will present a survey example of islamophobia analysis in Germany to demonstrate the usefulness of robust_gof.ado.
    Date: 2019–07–10

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