From: Effect of interest rate on economic performance: evidence from Islamic and non-Islamic economies
Variable | Non-Islamic countries | Islamic countries | ||||||
---|---|---|---|---|---|---|---|---|
Model 1 | Model 2 | Model 3 | Model 4 | |||||
Saving | Investment | Saving | Investment | |||||
Random effect | GMM | Random effect | GMM | Random effect | GMM | Random effect | GMM | |
Constant | 9.153 (0.605) | -------- | 16.875 (0.045) | --------- | −159.500 (0.139) | --------- | 20.272 (0.0071) | --------- |
Real interest rate | 0.178 (0.106) | 0.106 (0.037) | −0.147 (0.042) | −0.188 (0.041) | 0.153 (0.489) | 0.036 (0.845) | −0.192 (0.204) | −0.282 (0.032) |
National expenditure | 1.48E-14 (0.021) | −9.37E- 15 (0.000) | 3.86E-15 (0.339) | −7.96E- 16 (0.813) | 7.24E-16 (0.255) | −1.16E-15 (0.011) | 9.28E16 (0.021) | 8.01E-17 (0.805) |
Remittances received | −1.36E-10 (0.788) | 4.23E-10 (0.361) | −9.23E-11 (0.707) | 6.48E-11 (0.932) | −5.52E-10 (0.1319) | −3.15E-10 (0.024) | 4.98E-11 (0.796) | 3.14E-10 (0.001) |
Domestic credit provided by banks | −0.087 (0.191) | −0.047 (0.313) | −0.035 (0.335) | −0.178 (0.045) | −0.284 (0.017) | −0.090 (0.265) | −0.009 (0.857) | −0.019 (0.762) |
Inflation | 0.034 (0.650) | 0.103 (0.011) | −0.091 (0.089) | −0.161 (0.099) | 0.138 (0.55) | 0.247 (0.289) | −0.219 (0.175) | −0.252 (0.059) |
Per capita income | 1.195 (0.406) | 1.98E-06 (0.018) | 0.721 (0.261) | 3.80E-07 (0.379) | 16.201 (0.098) | 1.43E-06 (0.000) | 0.067 (0.902) | −5.51E-08 (0.555) |
Trade | −0.098 (0.052) | 0.041 (0.134) | 0.043 (0.128) | 0.076 (0.048) | 0.107 (0.07) | −0.055 (0.277) | 0.091 (0.002) | 0.107 (0.000) |
R 2 | 0.92 | --------- | 0.77 | --------- | 0.974 | --------- | 0.77 | --------- |
F-statistic | 3.038 (0.005) | --------- | 2.756 (0.024) | --------- | 158.437 (0.000) | --------- | 2.653 (0.013) | ---------- |
No. of Instruments | --------- | 20 | -------- | 22 | ----------- | 20 | ----------- | 22 |
Sargan test | --------- | 11.053 (0.438) | --------- | 10.629 (0.642) | --------- | 7.272 (0.776) | --------- | 4.918 (0.977) |
Arellano–Bond test, AR (1) | --------- | −1.524 (0.127) | --------- | −2.789 (0.005) | --------- | −2.173 (0.029) | --------- | −2.520 (0.011) |
Arellano–Bond test, AR (2) | ---------- | −0.967 (0.333) | ---------- | −0.859 (0.390) | ----------- | −1.304 (0.192) | ----------- | −1.683 (0.159) |