THE IMPACT OF ISLAMIC FINANCE ON ECONOMIC GROWTH FOR A SAMPLE OF DEVELOPING COUNTRIES FOR THE PERIOD (2010-2020)

Abstract

Islamic banks (IB) have an important role in the growth of GDP of developing countries. Islamic participatory plans merge the origins of lenders and borrowers. It allows the enabled bankers to lend to lending on a long -term basis to create projects with higher properties of risks and return, and thus, to support economic growth. Our analysis studies the contribution of Islamic financing to economic growth. Using a panel data collection, we compare bank brokers and traditional banks to add it to economic growth. We have studied a sample of 120 banks between 2010 and 2020. Through three regular slopes of small squares, and through experimental analysis we found that the development of non -usurious banks supports economic growth. Moreover, the cooperation between the financing situation improves economic growth. The integration of this new financing has not ignored the role of the traditional method of financing. The practicing of the distinguished brokers is also far from their theoretical situation in terms of the results of the participation.