nep-isf New Economics Papers
on Islamic Finance
Issue of 2019‒08‒19
four papers chosen by

  1. Persamaan Dan Perbedaan Perilaku Konsumen Dalam Ekonomi Konvensional Dan Hukum Ekonomi Islam By Gunarso, Gatot Hadi
  2. Panel Modeling of Z-score: Evidence from Islamic and Conventional Saudi Banks By Ghassan, Hassan B.; Guendouz, Abdelkarim
  3. Thresholds of External Flows for Inclusive Human Development in Sub-Saharan Africa By Simplice A. Asongu; Joseph I. Uduji; Elda N. Okolo-Obasi
  4. Transaksi Jual Beli Online (E-Commerce) dalam Perspektif Hukum Islam By Khalamillah, Fahmi

  1. By: Gunarso, Gatot Hadi
    Abstract: The equation between consumer behavior in carrying out consumption activities in conventional economics and Islamic economics is three. Among them in terms of understanding, philosophical foundation, motives and purpose of consumption, and the theory of consumer behavior. Meanwhile, differences in consumer behavior in conventional economics and Islamic economics, first, lie in the foundation of consumer behavior philosophy. Conventional economics views that world life is an absolute right for humans while Islamic economics teaches that world life is based on the principle of accountability to the Creator. Second, lies in the principle of consumption. There are three principles of consumption in a conventional economy, namely freedom, self-interest, and material. Islamic economic perspective, consumer behavior is based on the philosophy of divinity so that in each of its activities meeting the needs of consumers is required to always be guided by the principles of tawhid and also justice. The principle teaches individuals the moral awareness to live in obedience by worshiping Allah, and is responsible for everything he does, especially in terms of consumption
    Keywords: Consumers, Conventional Economy, Islamic Economics
    JEL: A1 D11 E0
    Date: 2019–07–27
  2. By: Ghassan, Hassan B.; Guendouz, Abdelkarim
    Abstract: Several studies on the banking sector have shown that Islamic banks are more financially robust and stable compared to conventional banks, mostly in periods of financial crises. The aim of this research is to measure and compare the level of stability between Islamic and conventional banks in Saudi Arabia using quarterly data. The sample covers around two-thirds of banks operating in the Saudi stock market, and data comprises the last global financial crisis. The panel data model shows that Islamic banks relatively reduce the financial stability index; meanwhile, they contribute efficiently to enhance financial stability through the diversification of their assets. According to our findings Riyad Bank and SAMBA positively impact the financial stability, while Al-Rajhi bank has a positive but moderate role in enhancing the banking stability. As well, the Saudi banking sector exhibits a weak competitiveness which negatively impact the banking stability. Consequently, the limited presence of Islamic banks in the Saudi banking sector menaces any efforts to improve the financial stability.
    Keywords: Islamic Banks, Financial Crisis, Financial Stability, Z-score Model, Saudi Arabia.
    JEL: C12 C23 G21 G28 G33
    Date: 2018–02–03
  3. By: Simplice A. Asongu (Yaoundé/Cameroon); Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria)
    Abstract: This research investigates the incidence of enhancing external flows on inclusive human development in a panel of 48 countries in sub-Saharan Africa. It complements the literature by examining the relevance of enhancing three types of external flows, namely: development assistance, foreign investment and remittances. Ordinary Least Squares, Tobit, Fixed effects, Generalised Method of Moments and Quantile regressions are used as empirical strategies. The following main results are apparent: (i) between 60 and 150 (% of GDP) is the threshold of foreign aid; (ii) 33.333 (% of GDP) is the foreign investment threshold and (iii) 25 (% of GDP) is the critical mass of remittances. At the established critical masses or thresholds, external flows start having positive effects on inclusive human development. Countries characterized by inclusive development levels that are low need more investment in foreign aid for inclusive human development compared to their counterparts characterized by inclusive human development levels that are high.
    Keywords: Foreign investment; Remittances; Foreign aid; Inclusive development; Africa
    JEL: F21 F24 F35 I30 O55
    Date: 2019–01
  4. By: Khalamillah, Fahmi
    Abstract: The more developed science and technology, the more developed methods used in the buying and selling process. E-commerce is a commercial transaction carried out between the seller and the buyer or with another party in the same agreement relationship to send a number of goods, services, or transfer of rights. This research is classified as Library Research, where data is collected by quoting in library research, literature searches are carried out rather than preparing a research framework or proposal to obtain similar research, deepening theoretical studies or sharpening methodologies. Based on the discussion of the results of the study, it can be concluded that online e-commerce is similar to the greeting contract, which is payment in advance and the item is received in the future.
    Keywords: E-commerce, Islamic law, fiqh muamalah
    JEL: A10 L81 L84
    Date: 2019–07–26

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