Exploring Stability of Ijarah Financing Market in Full Fledged Islamic Banks
Ijarah contract is apparent analogues to conventional lease contract for customers, but in essence, it is different. Many empirical studies have worked on the issues and acceptability of Ijarah. However, the exploration of demand and supply based determinants of Ijarah is overlooked. This study is designed to find such determinants using the bank-based indicators from financial statements and macroeconomic data for countries with full-fledged Islamic banks. This study has used Panel FGLS model to estimate the demand for Ijarah and supply of Ijarah models using determinants via theoretical model and empirical literature. The result of the study is instrumental in determining the equilibrium Ijarah and future trends in terms of under- or over-supply of Ijarah. Further, this study has identified the price elasticity of demand and supply for the case of Ijarah financing. Islamic banks can identify their operational strategies based on the elasticity of their Ijarah product.
How to Cite
Copyright (c) 2023 International Journal of Contemporary Economics and Administrative Sciences
This work is licensed under a Creative Commons Attribution 4.0 International License.
The Author(s) must make formal transfer of copyright for each article prior to publication in the International Journal of Contemporary Economics and Administrative Sciences. Such transfer enables the Journal to defend itself against plagiarism and other forms of copyright infringement. Your cooperation is appreciated. You agree that copyright of your article to be published in the International Journal of Contemporary Economics and Administrative Sciences is hereby transferred, throughout the World and for the full term and all extensions and renewals thereof, to International Journal of Contemporary Economics and Administrative Sciences.
The Author(s) reserve(s): (a) the trademark rights and patent rights, if any, and (b) the right to use all or part of the information contained in this article in future, non-commercial works of the Author's own, or, if the article is a "work-for-hire" and made within the scope of the Author's employment, the employer may use all or part of the information contained in this article for intra-company use, provided the usual acknowledgements are given regarding copyright notice and reference to the original publication.
The Author(s) warrant(s) that the article is Author's original work, and has not been published before. If excerpts from copyrighted works are included, the Author will obtain written permission from the copyright owners and shall credit the sources in the article. The author also warrants that the article contains no libelous or unlawful statements, and does not infringe on the rights of others. If the article was prepared jointly with other Author(s), the Author agrees to inform the co-Author(s) of the terms of the copyright transfer and to sign on their behalf; or in the case of a "work-for-hire" the employer or an authorized representative of the employer.
The journal is registered with the ISSN : 1925-4423.
IJCEAS is licensed under a Creative Commons Attribution 4.0 International License.
This license lets others distribute, remix, tweak, and build upon your work, even commercially, as long as they credit you for the original creation. This is the most accommodating of licenses offered. Recommended for maximum dissemination and use of licensed materials.