Pengaruh Indeks Economic Freedom, Macroeconomic Stability, Dan Indeks Institutional Quality Terhadap Islamic Financial Development (Studi Kasus Pada Negara Muslim di Kawasan Asia)

Viguna, Lailita Sukma (2026) Pengaruh Indeks Economic Freedom, Macroeconomic Stability, Dan Indeks Institutional Quality Terhadap Islamic Financial Development (Studi Kasus Pada Negara Muslim di Kawasan Asia). Undergraduate thesis, UPN Veteran Jawa Timur.

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Abstract

This study aims to examine the effects of the Economic Freedom Index, Macroeconomic Stability, and Institutional Quality Index on Islamic Financial Development (IFD) in seven Asian countries with large Muslim populations that are actively developing Islamic finance and are members of the Organisation of Islamic Cooperation (OIC). Employing a quantitative approach, this study utilizes panel data regression covering seven countries; Indonesia, Malaysia, Pakistan, Saudi Arabia, Türkiye, Brunei Darussalam, and Kazakhstan during the period 2015–2024. The findings reveal that the Economic Freedom Index, Gross Domestic Product (GDP), and Institutional Quality Index have a positive and significant impact on Islamic Financial Development. In contrast, inflation and unemployment rates do not exhibit a significant effect on the development of Islamic finance. These results indicate that the growth of the Islamic financial sector is driven primarily by institutional quality, economic freedom, and economic growth rather than by short-term macroeconomic fluctuations. This study highlights the crucial role of policymakers, particularly governments and financial authorities, in formulating policies that foster a healthy, stable, and conducive economic environment for the advancement of Islamic finance. Strengthening institutional quality, enhancing economic freedom, and promoting sustainable economic growth are essential to support the long-term development and resilience of the Islamic financial sector

Item Type: Thesis (Undergraduate)
Contributors:
ContributionContributorsNIDN/NIDKEmail
Thesis advisorOktafia, RennyNIDN0725107804renny.oktafia.es@upnjatim.ac.id
Subjects: D History General and Old World > DS Asia
Divisions: Faculty of Economic and Business > Departement of Economics
Depositing User: litaa Lailia Sukma Viguna
Date Deposited: 08 Jul 2026 08:37
Last Modified: 08 Jul 2026 09:01
URI: https://repository.upnjatim.ac.id/id/eprint/54881

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