Interplay of Islam and Economic Growth: Unveiling the Long-run Dynamics in Muslim and Non-muslim Countries
Faruq Umar Quadri
Helpman Development Institute, Abuja, Nigeria.
Oluwaseun Oladeji Olaniyi *
University of the Cumberlands, 104 Maple Drive, Williamsburg, KY 40769, United States of America.
Olugbenga Olaposi Olaoye
Development and Environmental Economist, Clinton School of Public Service, 1200 President Clinton Ave, Little Rock, AR 7220, United States.
*Author to whom correspondence should be addressed.
Abstract
This study delves into the intricate relationship between Islam and economic growth, examining how Islamic teachings impact economic policies and developmental outcomes. Using data from 47 countries over the period 2010-2021, and to achieve our research objectives the CS-ARDL estimating technique by Chudik et al. was employed. The research reveals that Islam positively influences economic growth in Muslim countries in the long run, with a less significant impact in non-Muslim countries. The study emphasizes the role of Islamic education in shaping the behavior of the Muslim population and its subsequent impact on economic growth. Recommendations include prioritizing investment in Islamic education to enhance human capital, fostering long-term economic plans that align with the positive influence of Islamic teachings, and leveraging education to contribute to sustained economic growth.
Keywords: Islam, economic growth, islamic education, muslim countries, CS-ARDL