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The Role of Sharia Banking Financing on the Growth of the National Manufacturing Industry
This study uses the VAR / VECM method to analyze the role of Islamic
banking financing on the growth of the national manufacturing industry. Based on
the results of the Granger causality test, there are 3 Granger relationships. First,
between Financing and Inflation, Second, between Inflation and Financing, (a
Granger relationship was found in the opposite direction). Third, Between
Financing and industry Manufacture (no Granger relationship was found in the
opposite direction). That is, of the five variables, only Financing to Inflation,
Inflation to Financing and Financing to industry Manufacture have a significant
relationship, while other variables such as Exchange rate, Oil price do not have a
Granger relationship. In the short term, the variable that significantly affects the
Islamic Banking Financing to the growth of the national Manufacturing Industry
is only Exchange rate variable. In the long term, the variables that influence
Islamic banking financing on the growth of the national manufacturing industry
are Financing, Inflation, Exchange rate and Oil price variable. industry
Manufacture contributed 45.25% to its own fluctuation. In that period the
Financing variable contributed 26.67%, the Inflation variable contributed 9.20%,
the Exchange rate variable contributed 14.57%, the Oil price variable contributed
4.28%.
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