The impact of fiscal spending and financing by Sharia banks on economic growth in Indonesia

Risdiana Himmati; Badara Shofi Dana; Kesy Indraswari; Agus Salim

doi:10.18326/ijier.v6i2.2483

The impact of fiscal spending and financing by Sharia banks on economic growth in Indonesia

Authors

Risdiana Himmati Universitas Islam Negeri Sayyid Ali Rahmatullah Tulungagung, Indonesia
Badara Shofi Dana Universitas Islam Negeri Sayyid Ali Rahmatullah Tulungagung, Indonesia
Kesy Indraswari Universitas Islam Negeri Sayyid Ali Rahmatullah Tulungagung, Indonesia
Agus Salim Xi'an Jiaotong University, Shaanxi, China

DOI:

https://doi.org/10.18326/ijier.v6i2.2483

Keywords:

Error Correction Model, Fiscal Spending, Financing by Bank, Tax

Abstract

Economic activity can be increased by fiscal policy stimulus and financing by Sharia banks. This study aims to analyze the roles of fiscal policy and banking sector in driving Indonesia’s economic growth. Fiscal Policy, Macroeconomics, Financing, and Economic Growth are the variables used in this study. The data used is secondary data for the 2014-2023 period. This study uses the Error Correction Model (ECM) method. The results show that Fiscal Policy with proxy tax and government expenditure influence Economic Growth. On the other hand, the Financing of the banking sector influences Economic Growth.

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Published

2024-12-27

How to Cite

Risdiana Himmati, Badara Shofi Dana, Kesy Indraswari, & Agus Salim. (2024). The impact of fiscal spending and financing by Sharia banks on economic growth in Indonesia. Indonesian Journal of Islamic Economics Research, 6(2), 108–117. https://doi.org/10.18326/ijier.v6i2.2483