In theory, risk sharing based Financing (RSF) is considered a corner stone of Islamic finance. It is argued to render Islamic banks more resilient to shocks. In practice, however thus feature of Islamic financial products is almost negligible. Instead, debt-based instrument, with conventional...

This study examines the validity of four different variants of the monetary model of exchange rate determination for Malaysia covering both the pre- and post-crisis periods using the vector error-correction models. The findings demonstrate that for both periods, the variables used are...

The aim of this paper is to investigate the drivers of the property prices. In particular, the paper seeks to identify the lead-lag relationship between the property prices and macroeconomic variables. Malaysia is taken as a case study. The standard time series techniques are employed for the...

The lead-lag relation between the unemployment rate and GDP per capita in a country remains unresolved. Okun's original work states that a one‐percentage point reduction in the unemployment rate would produce approximately 3% more output. But that may not be true at all stages of growth in an...

Finance has played a significant role in the process of economic growth. There have been many attempts to shed light on the direction of Granger-causality between finance and growth for helping the policy makers. But the issue of direction of Granger-causality has remained unresolved. This paper...

Export competitiveness is an important issue for any country. This paper aims to discern the factors that affect the export competitiveness of a country. Malaysia is taken as a case study. Theoretically, exports are expected to be affected, among others, by factors such as, inflation rate,...

The paper analyzes dynamic interactions among four macroeconomic variables, namely real gross domestic product (GDP), real exports, real exchange rate and foreign direct investment (FDI) for the Malaysian case using standard time series techniques. Malaysia’s GDP seems to be more driven by...

There have been a lot of works done on the impact of inflation on the conventional equity index. However, not much work has been done on the impact of inflation on Islamic equity index. This paper is an attempt at investigating whether the impact of inflation on Shariah (islamic) equity and...

The recent turbulent environment in the UK has given rise to Islamic finance as an alternative diversification investment class. Linked to this fact we tend to investigate the relationship of UK Islamic stock market with the given set of macroeconomic variables. Quarterly data are obtained for...

Repeated financial crises helped the growth of Islamic banks as an alternative asset for investment. Similar to conventional banks, Islamic banks also depend on depositors’ money as their source of funds. The profit rate of Islamic banks is expected to influence the amount of funds deposited...