nep-isf New Economics Papers
on Islamic Finance
Issue of 2023‒03‒13
three papers chosen by

  1. Islamic Republic of Mauritania: Selected Issues By International Monetary Fund
  2. The Future of Financial Support for Developing Countries: Regional and Islamic Monetary Funds By Zaman, Khalid
  3. Greening the Workforce: The Power of Investing in Human Capital By Aqib, Muhammad; Zaman, Khalid

  1. By: International Monetary Fund
    Abstract: Selected Issues
    Date: 2023–02–03
  2. By: Zaman, Khalid
    Abstract: The study analyses the strengths, weaknesses, opportunities, and threats (SWOT) of establishing regional and Islamic monetary funds as alternatives to the International Monetary Fund (IMF). The study considers this proposal's merits, flaws, prospects, and dangers and sheds light on the project's viability. Potential autonomy is strength of regional and Islamic monetary funds. Without outside interference, these funds may be better able to respond to their respective areas' specific requirements and cultural norms by implementing innovative financial strategies. Further, nations needing these resources would have more say over their economic and fiscal strategies, protecting them from potential IMF interference. On the other hand, the analysis reveals several severe flaws in this proposal. The capacity to give extensive aid and technical support may be constrained because regional and Islamic monetary funds lack the IMF's resources and competence. The IMF can help nations worldwide, whereas these funds probably cannot. The research finds that despite these difficulties, establishing regional and Islamic monetary funds presents great prospects for collaboration and integration among nations. This can strengthen cooperation in the face of shared economic problems and foster peace in the area. The research also shows where this project can be vulnerable to failure. Regional and Islamic monetary facilities risk losing their legitimacy and independence if they succumb to political interference, financial difficulties, or opposition from established organizations like the International Monetary Fund. Finally, the SWOT analysis gives an in-depth look at the opportunities and threats associated with creating regional and Islamic monetary funds as IMF substitutes. While certain advantages to using a hedge fund, such as autonomy, adaptability, and management, some severe constraints and risks should be considered. The results of this research give essential information on the viability of this plan, which policymakers and interested parties can use to make informed decisions.
    Keywords: International monetary fund; Regional monetary fund; Islamic monetary fund; SWOT analysis
    JEL: A11 F01
    Date: 2023–01–03
  3. By: Aqib, Muhammad; Zaman, Khalid
    Abstract: Experts are interested in creating human capital's role in boosting economic growth. Some research has been done on using human capital to help lessen carbon emissions in developing countries, but more needs to be done. So, the study looked at how developing human capital can make a country more prosperous by making the environment more sustainable through labour-added technology. The study analyzed data from Pakistan from the years 1975 to 2020 and employed robust least squares regression, Granger causality, and innovation accounting matrix methods to estimate parameters. According to the robust least squares regression results, lowering carbon emissions and increasing human capital may be achieved by investing more in environmentally friendly research and development. However, a green development strategy will never materialize since the federal government needs to invest more money in education, healthcare, and improvements to the employment market. The Granger causality analysis confirmed that continued economic growth Granger causes carbon emissions on the one hand while causing increasing life expectancy and net enrolment rates on the other hand. R&D spending and labour-augmented technology Granger cause an increase in life expectancy by fostering the development of cleaner production methods, which in turn helps improve the long-term viability of healthcare in a nation. According to the innovation accounting matrix results, life expectancy and the net enrolment rate will be the essential human capital factors affecting carbon emissions over the next ten years. In addition to human capital, changes in the labour market, spending on research and development, and technology that helps people do their jobs also affect the green development agenda. Pakistan should spend more of its budget on human development through technical knowledge and research and development. This would help the country switch from fossil fuels to clean, green technologies and hybrid-energy efficient methods to reduce carbon emissions.
    Keywords: Human development; Carbon emissions; Labor augmented technology; R&D expenditures; Pakistan.
    JEL: C32 J24
    Date: 2023–01–04

This nep-isf issue is ©2023 by . 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.