The Effect of Awareness On Global Islamic Financial Industries
Ernawati(1), Ambo Wonua Nusantara(2), and Mansyur Asri(3)
(1,2)Departement of Economics, Halu Oleo University, Kampus Bumi Tridharma Anduonohu Kendari, Indonesia
(3)Department of Informatics Management, STMIK Catur Sakti Jl.Abdullah Silondae Kendari, Indonesia
erna_unhalu[at]yahoo.com(1), nusantara.uho[at]gmail.com(2), Mansyur.asri[at]yahoo.co.id(3)
Abstract
The enormous potential of the Muslim population has not been able to drive the development of the Islamic finance industry triggered by low-level awareness. This research was conducted to determine the effect of awareness on the Islamic finance industry. The study used secondary data based on the publication of Thomson Reuters report in the period 2014 to 2017. Data analysis was data panel regression. The research findings showed that the countries with most of the size of Islamic finance assets are Malaysia, Saudi Arabia, and Kuwait, respectively. The leading connectivity of the Islamic financial industry was in Malaysia. The main interconnectivity in the regulation of the Islamic finance industry was Qatar and Saudi Arabia. Awareness and social factors have a significant positive influence on the size of Islamic finance, but regulation has not significant. The awareness was an entry point for the development of the Islamic finance industry. Social factors can also encourage Islamic financial with a smaller impact than awareness.
Keywords: awareness; social; regulation; financial; Islamic
Topic: Islamic Finance and Banking