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This paper aims to examine the distributional differences of Islamic bank financing responses to financing rate across bank-specific characteristics in dual banking system. The study also aims to provide understanding of how efficiently Islamic banks perform their roles as suppliers of capital for businesses and entrepreneurs.

The study uses panel regression methodology covering all Islamic banks in Malaysia. The study estimates the benchmark model for Islamic bank financing with respect to bank characteristics and monetary policy.

The evidence suggests that bank-specific characteristics are important in determining Islamic financing behaviour. The Islamic financing behaviour is consistent with conventional lending behaviour that the Islamic bank financing operates depending on the level of bank size, liquidity and capital. There is no significant difference between Islamic bank financing and conventional bank lending behaviour with respect to changes in monetary policy.

Many problems and challenges relating to Islamic financing instruments, financial markets and regulations must be addressed and resolved. In practice, it would be a good idea if Islamic banks move away from developing debt-based instruments and concentrate more efforts to develop profit and loss sharing instruments.

This paper aims to examine the role of term spreads to predict domestic output and inflation in Malaysia, a country with a relatively less-developed bond market.

The paper uses regression time-series regressions and probit models that control for past values of the dependent variable to determine the forecast performance of term spread on inflation and output in Malaysia.

The paper finds that term spread contains little information about future output and inflation at short horizons. Moreover, the usefulness of term spread to play a greater role in monetary analysis beyond conventional indicators in the case of Malaysia is limited. The degree of usefulness of term spread impediment could be attributed to the relatively fragmented, illiquid and captive bond market characteristics as compared to what is available in more matured and developed markets.

It is useful to incorporate technical and model-based approaches using yield curves beyond the usual indicator analysis from the policy point of view. Models could be used in tandem with other monetary and financial indicators to support discussions on the direction of monetary policy.

An efficient bond market could also play an important role in propagating monetary impulses via the relevant monetary transmission channels. Based on the findings, the paper suggests that there is a strong case to deepen domestic bond market. This would greatly enhance price discovery among market participants, improve risk management away from the traditional source for funds (i.e. banking system) and address supply-related issues.

The purpose of this paper is to critically analyse the relevance of directly targeted poverty reduction programmes in Muslim countries by means of conditional cash transfers (CCTs). The paper analyses the best practices and lessons learnt to date and explores the practical issues to implement CCT poverty reduction programmes in Muslim countries.

The methodology is based on the qualitative assessment drawn from CCTs implementation in Muslim countries, namely Bangladesh, Indonesia, Pakistan and Turkey. The methodology also identifies the practical issues including the use of Islamic instruments to implement CCT poverty reduction programmes.

The analysis in Muslim countries suggests that CCT programmes have had a positive effect and that the costs are relatively affordable if implemented with appropriate programme designs. In many cases, there have been positive secondary effects over and above the primary goal of poverty reduction. The paper also argues that the concept of CCTs is in line with the underlying principle of Islam to eradicate poverty via cash distribution approach.

A decade long experience in some Muslim countries demonstrates that social cash transfers (including CCTs) have a significant impact on reducing poverty and vulnerability and promoting human development. Since none of CCT programmes in Muslim countries explore and integrate the potential of Islamic instruments (Zakat, Sadaqat, Awqaf and Qard Al-Hassan), it is timely for governments, multinational development institutions and non-profit organizations to utilize these instruments to tackling poverty.

The purpose of the paper is to gauge the usefulness of the Monetary Condition Index (MCI) and Financial Condition Index (FCI) for the conduct of monetary policy in Malaysia.

The MCI is constructed as the weighted sum of changes in the exchange rate and interest rate from their levels in a chosen base year. The weights are obtained by summing up the coefficients on the lags variables from estimating the determinants of backward‐looking aggregate demand.

The paper finds that the movement inflation induces the movement in either interest rate or exchange rate. The result also indicates that the interest rate channel is found to be more powerful than the exchange rate channel. The method in determining the weights for each policy component of the index however indicates some degree of instability due to some external shock affected the exchange rate or the domestic short‐term interest rate.

In a small open economy with deregulated markets, it is crucial to assess the combined effect of interest rate and exchange rate on monetary conditions and the conduct of monetary policy. Despite the index ability to explain monetary conditions in Malaysia, the estimate of MCI and FCI should be used cautiously. The index does not offer a precise signal on the state of monetary condition in Malaysia.

The purpose of this paper is to evolve a theoretical account that highlights the determinations for achieving financial inclusion in Islamic finance.

The methodology used is a library approach where the existing and relevant document remains the sources of concern.

The outcome of the study designates that robust technology; microcredit and microfinance services; legal and regulatory commitment of the regulators and policymakers of the Islamic financial institutions; extensive public awareness of Islamic financial services and products; financial proficiency and literacy; and financial infrastructure are some of the imperative drives for realising financial inclusion particularly for women, low income earners and rural poor.

The paper limited itself to realising financial inclusion in Islamic finance. Thus, anything beyond the stated limitation is outside the scope of our objective. The paper has an inference for the concerned professional bodies, regulators, policymakers, stakeholders and practitioners of Islamic financial institutions.

The paper is original in its nature, it is also a pearl and a reference to those who may conceive and cherish the relevance of its capacity.

The purpose of this paper is to provide a comparative analysis on the regulation, the applicable law and the tax treatment in the operations of NPOs in developing countries.

A comparative analysis in term of NPOs legal framework governing the formation, existence, restriction and fundraising of NPOs, as well as the tax treatment for the NPOs.

The findings suggest that regulations of NPOs in these countries exhibit a mixed picture with respect to the establishment, operation, affiliation and fundraising, as well as their tax incentives and preferences. In some countries, NPOs have fewer restrictions and are eligible for generous tax incentives, while for other countries, various restrictions and lack of incentives are the norms. The legal frameworks for NPOs are burdensome and, to some extent, do not reflect the importance of NPOs as partner for development of society. The findings also suggest that tax treatments in these countries vary from simple to complex coupled with obscure tax exemptions rules.

Around the globe, authorities and society are increasingly acknowledging the important role of NPOs in dealing with social needs from basic poverty, health and sustainable environments. This study’s focus on NPOs regulation will provide an understanding for authorities to design an appropriate framework for the growth and vibrancy of the NPOs.

The purpose of this paper is to examine the determinants of innovation outputs proxied by number of patent applications, trademarks and industrial designs in developing countries.

The paper employs a panel data and Negative Binomial method to analyse the main determinants affecting the innovation outputs.

The results implicitly suggest that providing a fertile ground to attract more foreign direct investment (FDI) can lead to much better innovation outputs. The study also strongly supports the role of institutions and governance for increasing innovation activities in developing economies as indicated by positive impacts of governance factors in the model. However, the impact of economic freedom indicators on improving innovation outputs is mixed.

This paper contributes to the existing literature in two ways: it examines the effect of FDI and research and development on innovation of selected developing countries; and the study uses a panel data approach to increase the accuracy of the results through exploiting the significant variations of innovation outputs across countries, while controlling for a larger number of innovation outputs and product determinants. To the authors knowledge, this is the first empirical study on the behaviour of innovation outputs for developing countries.

This paper aims to investigate the relationship between structural change and economic growth for a panel of four developing countries, namely, Malaysia, Nigeria, Turkey and Indonesia over 1960-2010.

The study extent the growth equation by incorporating degree of openness, labour and investment and construct structural change indices – modified Lilien index and the norm of absolute values. It utilizes the recently developed panel cointegration techniques to test and estimate the long-run equilibrium of the growth equation.

The results confirm that structural change and economic growth are cointegrated at the panel level, indicating the presence of long-run equilibrium relationship. However, the impact of structural change on economic growth seems to be small and evolve slowly.

The findings indicate the need for policymakers to identify the binding constraints that impede growth and the importance of institutionalize policy to encourage investment in productive sectors.

The purpose of this study is to analyse, firstly, whether education, financial inclusion, financial literacy and financial planning can be antecedents that affect Islamic welfare and, secondly, whether productivity can be a mediator to improve Islamic welfare.

This study involved quantitative research using data obtained from a survey. The respondents were 538 Muslim families in East Java, Indonesia. Structural equation modelling was used for the analysis.

This study tested 13 hypotheses, of which 10 were accepted. The accepted hypotheses refer to the effects of financial literacy on productivity, financial inclusion on productivity, financial planning on productivity, financial planning on Islamic welfare, education on Islamic welfare, productivity on Islamic welfare, financial literacy and productivity on Islamic welfare, financial inclusion and productivity on Islamic welfare and financial planning and productivity on Islamic welfare, as well as the effects of financial inclusion on Islamic welfare. Meanwhile, three hypotheses were not accepted; they refer to the effects of financial literacy on Islamic welfare, the effect of education on productivity, as well as the impact of education and productivity on Islamic welfare.

The study was conducted only with respondents living in East Java, so the results depict the condition of Muslim families’ welfare in East Java.

Research into the antecedents of Islamic welfare has received little academic attention, so this study explores how education, financial inclusion, financial literacy, financial planning and productivity could affect Islamic welfare among Muslim families.