A comparative study of the development of financial markets on the impact of business cycles and economic growth on oil price fluctuations in countries with Islamic banking systems and countries with conventional banking systems.
Subject Areas : Financial Economics
Alireza Golzar
1
,
هوشنگ مومنی وصالیان
2
1 - PhD student in Islamic economics
Central Tehran Azad University
2 - استادیار دانشکده اقتصاد و حسابداری دانشگاه آزاد اسلامی واحد تهران مرکزی .تهران.ایران
Keywords: Financial markets, oil price fluctuations, business cycles, Islamic banking, conventional banking,
Abstract :
All financial markets seek to collect capital and establish communication between capital seekers and capital owners. The present study deals with the comparative study of the impact of the development of financial markets on the influence of business cycles and economic growth from oil price fluctuations in the banking systems of selected countries for the time period of 2000-2021 and by using the panel model in a selection of Islamic countries including; Iran, UAE, Qatar, Kuwait, Saudi Arabia, Bahrain, Oman, Algeria, Jordan, Malaysia, Turkey and Tunisia and countries with conventional banking system including: Australia, Switzerland, Denmark, Netherlands, Germany, Ireland, America, Canada, New Zealand, Norway, Sweden, England, Iceland, South Korea and Japan have been done. The macroeconomic data of the countries were extracted from the World Bank (WDI) database and the balance sheet information of the banks was extracted from Bank Scope. The results of the study for developed countries show that the increase in the oil price shock in these countries has caused a decrease in economic growth and an increase in the production gap, and this effect has gradually decreased after passing the perigee point and has reached zero in the long term. Also for developing countries; One standard deviation of the oil price shock area on economic growth and production gap, these variables showed an increase for two periods and then decreased after two periods. Financial crises have also led to an increase in the production gap in this group of countries.
