Publication: Analyzing Long-run And Short-run Relationships Between Macroeconomic Variables And The Jordanian Islamic Bank
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Date
2015
Journal Title
Journal ISSN
Volume Title
Publisher
Canadian Center of Science and Education
Abstract
This paper presents an empirical examination on the equilibrium relationships between macroeconomic variables (gross domestic product (GDP), foreign direct investment (FDI), and money supply (M2)) and Murabaha to the Purchase-Order (MPO), by using annual time series data for the 1978–2012 period. The Ng- Perron (2001) was applied to test the integration levels, while the bounds F-statistic test was used to examine the co-integration relationship among the variables. The autoregressive distributed lags (ARDL) approach was employed to examine long-run and short-run relationships between the variables. The results indicate that all variables are stationary at first difference and all variables are co-integrated. Further, the results of the ARDL indicate that there is a positive relationship between macroeconomic variables and MPO in long-run and short-run.
Description
Keywords
murabaha to the purchase-order, Jordanian Islamic bank, macroeconomic variables, ARDL approach, Jordan
Citation
International Journal of Economics and Finance; Vol. 7, No. 2; 2015 ISSN 1916-971X E-ISSN 1916-9728