The Existence of Islamic Fintech in Encouraging National Economic Growth

Authors

  • Muhammad Iqbal Perbanas Institute, Indonesia
  • Arianto Muditomo Perbanas Institute
  • Alindha Farezha Perbanas Institute

DOI:

https://doi.org/10.29040/jiei.v8i3.5679

Keywords:

Islamic Fintech, Economic Growth, Peer-to-Peer Lending

Abstract

This article aims to identify the role of Islamic fintech (peer-to-peer lending) in influencing Indonesia's economic growth. Economic growth is proxied by the growth rate of gross domestic product (GDP), while sharia fintech assets are used as indicators of peer-to-peer (P2P) lending based on sharia information technology. The relationship between the short-term and long-term effects of Islamic fintech P2P lending and economic growth was measured using the vector error correction model (VECM) method. The results of the analysis of the VECM results show that in the long term, every 1 billion increase in Islamic fintech assets will increase economic growth by 0.108%. Furthermore, the short-term effect was found that economic growth was significantly influenced by economic growth in the previous period (55.7%), economic growth in the previous three periods (-62.2%), and the growth of Islamic fintech assets in the previous two periods (0.09%). These results provide input to regulators and the government that the development of fintech P2P lending has an undeniable influence on economic growth, so that the preparation of regulations, ecosystem infrastructure and consumer protection is an important priority to ensure that the objectives of achieving monetary policy on economic growth can be controlled.

Author Biography

Muhammad Iqbal, Perbanas Institute

Program Studi Ekonomi Syariah, Fakultas Ekonomi dan Bisnis

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Published

01-11-2022

How to Cite

Iqbal, M., Muditomo, A., & Farezha, A. (2022). The Existence of Islamic Fintech in Encouraging National Economic Growth. Jurnal Ilmiah Ekonomi Islam, 8(3), 3145–3152. https://doi.org/10.29040/jiei.v8i3.5679

Issue

Vol. 8 No. 3 (2022): JIEI : Vol.8, No.3, 2022

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Articles

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