Does Access to Finance Lead to Sustainable Development? An Empirical Assessment of 18 OIC Members Countries
Madha Adi Ivantri
Ekonomi Syariah, Universitas Nadhatul Ulama Surakarta
Abstract
This study investigates the relationship of access to finance and the dimensions of sustainable development in OIC countries. The analysis technique used Fixed Effect Estimation (FE) and Random Effect (RE) from the panel data of selected OIC member countries in the period 2006-2014. The estimation results show that financial access does not have a significant effect on economic growth and environmental quality, but has a positive effect on human development. Based on these results, the OIC countries are expected to increase the reach and ease of funding for all levels of society. On the other hand, careful funding is needed to avoid projects that endanger sustainable development.
Keywords: Access to Finance, Sustainable Development; OIC Members Countries
Topic: Islamic Finance and Banking