Analysis Of Contribution Of Islamic Micro Financial Institutions On Economic Growth
Erfinda Mustika Dewi
Departement Sharia Economic, Faculty Economic and Business, Airlangga University
Abstract
Economic growth is one indication of increasing community welfare. This study aims to determine how much the contribution of Islamic microfinance institutions, namely Islamic Savings and Credit Cooperative (ISCC) to economic growth (GRDP) in East Java through through Micro, Small and Medium Enterprises (MSMEs). The approach used in this research is descriptive quantitative approach using path analysis techniques with four exogenous variables, namely ISCC Total Capital, ISCC Total Assets, ISCC Net Income, and ISCC Business Volume. GRDP is an endogenous variable, and MSMEs are intervening variables. This study uses saturated samples, namely ISCC data from East Java cooperative performance data obtained from the East Java Cooperative & SME Office, then East Java Constant Price GRDP data obtained from Central Statistics Agency East Java, MSMEs that use Production Index data The Micro and Small Industry (IPIMK) was obtained from the National Statistics Agency.
Keywords: Islamic Micro Finance. Cooperative. Micro, Small and Medium Enterprises. Economic Growth.
Topic: Islamic Micro finance