Muhammad Abubakar Siddique, Mirajul Haq and Memoona Rahim
Since 2004, Pakistan carried the banking sector under the umbrella of the Islamic financial paradigm, consequently the Islamic Banking Industry (IBI) placed an upright position in…
Abstract
Purpose
Since 2004, Pakistan carried the banking sector under the umbrella of the Islamic financial paradigm, consequently the Islamic Banking Industry (IBI) placed an upright position in the banking and financial market of Pakistan. In this context, this study aims to analyze the effect of Shariah-compliant products of the IBI on the pace of economic growth in Pakistan.
Design/methodology/approach
The data set covered 13 Pakistani Islamic banks comprising four full-fledged Islamic banks and 9 conventional banks holdings standalone Islamic Branches, for the period 2004–2019. Considering nature of the empirical model and data set, the estimation was carried out with the Pooled Ordinary least squares estimation technique.
Findings
The findings of the study reveal that Shariah-compliant products have a positive effect on the pace of economic growth. This indication is based on the fact that five out of six Shariah-compliant products hold positive signs and are statistically significant. In addition, the empirical evidence shows that at large conventional financial sector signifies its role in the Shariah-compliant products and pace of economic growth nexus. Among the control variables, foreign direct investment, human capital, trade openness, inflation and private credit pose negative, whereas money supply and stock market capitalization have a positive effect on the pace of economic growth in Pakistan. Findings of the study points towards the fact that Shariah-compliant financing has great potential to enhance the economic growth of Pakistan therefore to touch the sustainable development goals (SDGs).
Practical implications
Having played a significant role in the growth process, Islamic bankers should portray a positive image of their industry to the government authorities. The government should design a public policy to encourage Islamic modes of finance at a macro level to increase the pace of economic growth and therefore SDGs realization.
Originality/value
Findings of the study present new insight into the application of Shariah-compliant products of IBI toward the realization of SDGs in case of Pakistan.
Details
Keywords
Böhm-Bawerk’s time preference approach had significant importance among many other theories of interest. His assertion based on inherent human nature and the distinction he made…
Abstract
Purpose
Böhm-Bawerk’s time preference approach had significant importance among many other theories of interest. His assertion based on inherent human nature and the distinction he made between the positive and normative aspects of interest were remarkably authentic. As it is assumed that any efficient evaluation, judgment or regulation on the legitimacy of interest has to consider the theory of time preference, especially Böhm-Bawerk’s approach, the paper aimed to examine the Islamic economists’ response to the time preference theory of interest.
Design/methodology/approach
The paper presents Böhm-Bawerk’s time preference theory of interest. Then, it evaluates the Islamic economists’ views on the concepts of the time value of money and time preference qualitatively by scrutinizing the relevant literature.
Findings
It is observed that there is not any proper response of Islamic economists to the assertions of the causes of time preference. Responding to such challenges requires an approach that is mostly developed in the positive domain.
Originality/value
Although it is evident that interest is regarded as destructive in Islamic economics, the consideration is primarily normative. However, a convincing assertion also requires to be justified in the positive domain. Empirical works are exhibiting the problems with interest-based transactions. Besides, this paper raises the need for theoretical expositions of Islamic economists in response to the interest theories, which claim that the existence of interest is inevitable.
Details
Keywords
Shahid Hussain, Abdul Rasheed and Mahmoona Mahmood
This paper investigates gender disparity in investment decisions within the popular American TV show Shark Tank.
Abstract
Purpose
This paper investigates gender disparity in investment decisions within the popular American TV show Shark Tank.
Design/methodology/approach
The research uses a comprehensive dataset of 925 pitches from 14 seasons and 316 episodes, covering August 2009 to May 2023.
Findings
Contrary to previous studies, the findings indicate that female entrepreneurs do n'ot face discrimination in terms of their pitching success rates, regardless of their industry affiliation. However, the authors did observe that female entrepreneurs tend to receive lower valuations, both self-assessed and in final deals. This suggests a self-imposed gender gap in venture capital and angel investing, likely stemming from lower entrepreneurial aspirations among women.
Originality/value
To tackle this issue, the authors propose promoting female venture capital by increasing the representation of female entrepreneurs and business angels on Shark Tank. Such role models can inspire aspiring women in these fields. Additionally, the authors believe that mixed-gender founder teams, comprising both men and women, can play a significant role in developing promising startups with viable business models.