Document Type : Original Article
Authors
1
PhD student in Economics, Faculty of Administrative Sciences and Economics, University of Mazandaran, Babolsar, Mazandaran, Iran
2
Associate Professor, Department of Economics, University of Mazandaran, Babolsar, Mazandaran, Iran
3
Professor of Economics, Department of Business Economics, University of Mazandaran, Babolsar, Mazandaran, Iran
10.22034/oajre.2024.422086.1075
Abstract
Due to their underdeveloped or limited capital markets, the majority of the countries continued to rely largely on the banking sector, making the region constantly exposed to financial crises. The sukuk market is significantly impacted negatively by financial crises. In this study, the author employed a GMM technique to investigate the factors that affected the issuance of sukuk in 15 selected Islamic countries between years 2013-2021. This study proposes the relationships of sukuk with some new possible determining factors along with some other factors which have not received enough attention in the literature. according to the estimation results, net foreign assets, gross domestic product growth, and budget deficit have a significantly and negative influence on the growth of the sukuk market. While, exports of goods and services, real effective exchange rate and foreign direct investment have a positive and significantly influence on the growth of the sukuk market. Our findings reveal that Sukuk market will have a strong potential of growth worldwide in the next years.
Keywords
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