Abstract :

The purpose of this paper is to study, in the first place, the theoretical relationship between Islamic financial development, investment and economic growth. Second, we empirically try to discover the interaction between “Islamic financial development, investment and economic growth”. Our empirical study highlights the direct effects of Islamic financial development on growth and investment. Finally, we also clarify the indirect effects of Islamic financial development on growth through Investment and vice versa, also on other socio-economic indicators over the period from 1990 to 2018, while using the model with simultaneous equations for the MENA region and East Asia and the Pacific.

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Keywords :

economic growth, investment, Islamic Financial Development, Simultaneous equations Models.

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