In might be stronger than the one obtained.

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In might be stronger than the one obtained.

In this study, it is to investigate the current effect of IB total financing
and total deposit towards the economic growth of Malaysia in the immediate
effect and in the short-run. This study uses Shapiro-Wilk test to determine
whether or not the data is normally distributed or not. It also conducts Trend Analysis in order to find the aspects of the
technical analysis of the industry that will be evaluated. This study uses the
Unit root test for Reliability Test to identify the stationary of the data for
both variables. To measures the degree of association between variable, this
study uses Spearman Correlation for non-parametric statistics and also uses
Multiple Linear Regression in order to estimate the relationship among the
variables whether they have positive or negative relationship with each other
that uses multiple explanatory variables.

            This
study found that in the immediate effect there is no significance between the
TD and TF of Islamic Banks towards the GDP of Malaysia as the Spearman
correlation concludes >0.05 for both IV and DV. However, in the short-run,
the results show a different story. It stated that there is significance
between the IB’s Total Deposit and Total Financing towards the GDP of Malaysia
where the correlation analysis is <0.05. The test was letter supported with the Multiple Linear Regression where the result for TD and TF regression on GDP in the short run shows that it has explanatory power. The study that has been conducted has limitations such as the limited availability of data particularly during the early years of the Islamic banking establishment in Malaysia. The latest full data that we could obtain was from the year 2007 only since all sample banks stated to provide their financial report around that time. If the study had been done by obtaining the data from the period of 10 years, the result might be stronger than the one obtained. Some suggestions that can be done to make the study more reliable in the future is by using other methods such as the VAR model which might find a different results for the study. Plus, if it is in the term of time period, we would might want to wait for another 10 years to get a more precise results on how the activities of the Islamic banks in Malaysia could affect the economic growth since during that range of time, the Islamic banking industry in Malaysia must have been way more better in terms of their performance and market capitalization. Furthermore, the amount of independent variables that we used in the study was just two which is the total financing and the total deposits. If further studies want to be conducted, more indicators can be include to be the independent variables list such as the performances of the Islamic banks which can be indicate by using the Return on Asset (ROA) and also the Return on Equity (ROE) of the banks. Plus, controlled variables can also be included in future study such as the trade import and export of the country which directly can make the independent variable more reliable in its usage to the dependent variable.    

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