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ARTÍCULO
TITULO

THE IMPACT OF ISLAMIC CAPITAL MARKET DEVELOPMENT ON ECONOMIC GROWTH: THE CASE OF INDONESIA

Novita Sari    
Syamsurijal AK    
Marlina Widiyanti    

Resumen

The purpose of this study was to determine the short and long term effects of three Islamic capital market instruments, namely the corporate sukuk, the Jakarta Islamic Index, and Islamic Mutual Funds on economic growth. The data set is built based on the Badan Pusat Statistik Indonesia and Otoritas Jasa Keuangan Indonesia (OJK) and runs from January 2011 to December 2017. This research uses the co-integration test to examine the long-term relationship, as well as the error correction model to analyze the existence of a short-term relationship. The results show that in the long-term there is a significant positive influence of the corporate sukuk, the Jakarta Islamic Index and Islamic Mutual Funds on economic growth, while in the short-term there is a significant impact of the corporate sukuk, Jakarta Islamic Index, and Islamic Mutual Funds on economic growth in Indonesia. The ECM results indicate that in the long term the Islamic capital market is able to provide alternative capital to support economic growth in Indonesia.

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