Browsing by Author "Hussain, Tufail"

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    Institutional quality and Islamic financial development
    (Modern Finance Institute in cooperation with Poznan University of Economics and Business, 2024-02-08) Muhammad, Mansur; Baita, Abubakar Jamilu; Hussain, Tufail
    The Islamic financial system has become an important source of financing for many Muslim and non-Muslim countries. Therefore, this paper examines the role of institutions in facilitating the development of Islamic financial institutions. The study covers the period 2013-2021 for a panel of 11 leading economies in Islamic finance and employs fixed effects with the Driscoll and Kraay (1998) estimator. The results show a positive impact of effective governance on the development of Islamic finance. However, regulatory quality has a significant negative impact on the development of Islamic finance. Thus, we argue for the improvement of critical institutions that include political, legal, governmental, and regulatory aspects.