Islamic Finance: A Bulwark against Crisis?

Dr. Hatem Derbel; Neila Dammak; Ali Chkir

Authors

Dr. Hatem Derbel
Neila Dammak
Ali Chkir

Keywords:

Islamic Finance, Conventional Finance, financial crisis, VAR model

Abstract

The aim of this paper is to show that the Islamic finance is more stable than the conventional finance constituting, thus, a means to reduce the impact of financial crisis. Using a VAR model for the financial indexes of France (SBF250), United States (DOW JONES), United Kingdom (FTSE100), Indonesia (JAKISLM) and Saudi Arabia (TADAWUL) covering the period (26/02/2007-12/20/2010), we show that the effect of a shock on the American market during the period of crisis is negatively transmitted on all other markets, but with a small extent on the market using the method of Islamic financing.

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How to Cite

Islamic Finance: A Bulwark against Crisis?. (2012). Global Journal of Human-Social Science, 12(C11), 101-113. https://socialscienceresearch.org/index.php/GJHSS/article/view/474

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