nep-isf New Economics Papers
on Islamic Finance
Issue of 2021‒10‒04
four papers chosen by
Mohamed Mohamed Tolba Said

  1. Is Islamic Finance Evolving Into Fintech and Blockchain: A Bibliometric Analysis By Ahmet Aysan; Ibrahim Musa Unal
  2. Labor Market Nationalization Policies and Exporting Firm Outcomes: Evidence from Saudi Arabia By Patricia Cortés; Semiray Kasoolu; Carolina Pan
  3. Performance Evaluation of Islamic and Non-Islamic Equity and Bonds Indices: Evidence from selected Emerging and Developed Countries By Audi, Marc; Sadiq, Azhar; Ali, Amjad
  4. Impact of FDI on Income Inequality in Pakistan By Mahmood, Haider; Chuadhary, AR

  1. By: Ahmet Aysan (HBKU - Hamad Bin Khalifa University); Ibrahim Musa Unal (HBKU - Hamad Bin Khalifa University)
    Abstract: This paper conducts a bibliometric research in the literature on Fintech and Islamic finance. The data of this study consists of relevant articles obtained from the Scopus database as of February 2021. A keywords bundle related to Islamic finance and keyword has been used for the search, resulting in 89 publishments included in this research. Results show the stunning increase in the Islamic Fintech publishments after 2017, mainly in the fields of cryptocurrencies, micro-finance, impact investing, and SRI investing, and so on. The two main centers of Islamic Fintech research are Malaysia-Indonesia Region and the GCC area. The increasing number of Islamic Fintech publishments show the potential of the field for the industry's future.
    Keywords: blockchain,cryptocurrency,bibliometric,Islamic,Fintech
    Date: 2021
  2. By: Patricia Cortés; Semiray Kasoolu; Carolina Pan
    Abstract: In the last decade, Gulf countries have imposed hiring quotas to promote the participation of natives in the private sector and address high levels of unemployment, particularly among women and the youth. This paper explores how one such policy, Nitaqat in Saudi Arabia, affected the outcomes of exporting firms, the most productive sector of the non-oil economy. We find that whereas the policy was successful in increasing the employment of Saudi nationals by these firms, it came at a high cost. In the year following the announcement of the policy, relative to firms above the quota, firms below the quota were 1.5 percentage points more likely to exit the market, 7 percentage points less likely to export, and conditional on exporting, the value of their exports fell by 14 percent. Additionally, surviving treated firms reduced their labor force by 10 percent. We find that to comply with the policy, firms hired mostly lower-wage, low-skilled Saudis. The policy doubled the share of women in treated firms. Importantly, we find that these short-term effects persisted for at least three years after the policy’s implementation.
    JEL: J21 J61
    Date: 2021–09
  3. By: Audi, Marc; Sadiq, Azhar; Ali, Amjad
    Abstract: This article has examined the differences in performance between the Islamic and conventional stocks and bond indices in the developed and emerging countries. The sample period is consisted of 2007 to 2018 in equity, whereas the period of debt is from 2014 to 2018. Different risk-adjusted return measurements have been applied to investigate that Islamic stock indices' performance is better than conventional indices. The results show that the Islamic equity indices have better performance than the traditional indices in financial crisis. The individual sample concludes that Islamic equity indices of Germany and the UK perform better than traditional indices, but in the USA conventional indices perform better. The performance of Shariah equity indices in all selected emerging countries is better than the traditional equity indices. This shows that Islamic indices are highly demanded throughout the world as an alternative to traditional indices.
    Keywords: Financial Crisis, Risk-Adjusted Measures, Shariah Screening Process
    JEL: B26 G2
    Date: 2021
  4. By: Mahmood, Haider; Chuadhary, AR
    Abstract: The study attempts to find out the impact of foreign direct investment on income inequality in Pakistan. It takes foreign direct investment, government expenditure on health and education and gross domestic product growth rate as independent variable and GINI coefficient as dependent variable. ADF, PP, Ng-Perron and Zivot-Andrews Unit root tests are used to find the unit root problem. ARDL and its error correction model are used to find the long run and short run relationships. The study finds the long run and short run relationships in the model. Foreign direct investment has a positive impact on GINI coefficient. So, foreign direct investment is responsible in increasing the income inequality in Pakistan. Government expenditure on health and education has a negative relationship with income inequality. Economic growth has an insignificant impact on income inequality.
    Keywords: FDI, Income Inequality, Economic Growth, Cointegration
    JEL: F2
    Date: 2021

This nep-isf issue is ©2021 by Mohamed Mohamed Tolba Said. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.