Title: The Relationship Between Islamic Banking Activities, Islamic Insurance Activities and Economic Growth in Indonesia
Author: Maulidah Atha Mukhlifah
Affiliations : Master of Economics Program, Faculty of Economics and Business, Universitas Airlangga Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This study aims to find the relationship between Islamic banking activities, Islamic insurance activities, and economic growth. This study uses VECM to process data. The data used is data from 2009 to the second quarter of 2019. The results of this study show a relationship between Islamic insurance activities and Islamic banking activities. Islamic banking activities influence Islamic insurance activities in a Granger manner, and Islamic insurance activities positively influence Islamic banking activities in the short term. In addition, a relationship was found between Islamic insurance and economic growth. Granger Causality Test and VECM show that economic growth affects Islamic insurance. Conversely, Islamic insurance does not affect economic growth. Another finding in this study is that economic growth in Indonesia is not affected by Islamic financial institutions.
Keywords: Islamic Bank, Islamic Life Insurance, Islamic General Insurance, Economic Growth, VECM, Indonesia