Islamic bank financing: finding the spatial effect and influencing factors from an archipelagic Indonesia

Mufraini, M. Arief, Wicaksono, Ahmad Tibrizi Soni ORCID:, Meylianingrum, Kurniawati ORCID:, Ningtyas, Mega Noerman and Supriyono, Supriyono (2020) Islamic bank financing: finding the spatial effect and influencing factors from an archipelagic Indonesia. International Journal of Economic Policy in Emerging Economies, 13 (1). pp. 36-51. ISSN 1752-0460

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In the light of Islamic bank inclusiveness, this study aims to analyse more for spatial regions effect to identify influencing factors of financing. Secondary data from 33 provinces of Indonesia took a part to complete research analysis. The findings of the research reveal such a strong spatial influence on Islamic bank financing. Jakarta and West Java Province ultimately luxuriate high value of financing, but Banten Province enjoy only low value of financing although it surrounded by the high value neighbour provinces, and Papua Province suffer from Islamic bank financing and also surrounded by the low value ones. Then it is found that Indonesia has seven provinces included in the category of neighbour less namely the Provinces of West Nusa Tenggara, North Maluku, Maluku, East Nusa Tenggara, Bali, Bangka Belitung, and Riau Islands. And factors that affect geographical spatial concentration of Islamic bank financing are gross domestic product and deposit.

Item Type: Journal Article
Keywords: spatial regression model; Islamic bank financing and archipelagic Indonesia
Subjects: 14 ECONOMICS > 1401 Economic Theory > 140102 Macroeconomic Theory
14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics
14 ECONOMICS > 1402 Applied Economics > 140218 Urban and Regional Economics
14 ECONOMICS > 1403 Econometrics > 140302 Econometric and Statistical Methods
15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150203 Financial Institutions (incl. Banking)
Divisions: Faculty of Economics > Department of Islamic Banking
Depositing User: Ahmad Tibrizi Soni Wicaksono
Date Deposited: 16 Nov 2020 14:32


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