Investigating the impact of Islamic financial instruments (sukuk) on inflation in the country iran

Subject Areas :

Ashkan rahimzadeh ¹ , BAHMAN khanalizadeh ²

1 - Assistant Professor, Department of Economics, Zanjan Branch, Islamic Azad University, Zanjan, Iran
2 - PhD Student in Financial Economics, Department of Economics, Zanjan Branch, Islamic Azad University, Zanjan, Iran

Received: 2023-06-15 Accepted : 2023-07-10 Published : 2023-05-22

Keywords: ", Iran", FMOLS", Investment", Financial instruments", Sukuk",

Abstract :

The growing importance of Islamic securities around the world has recently created a growing interest in researching these markets due to the role they play in Islamic economies. Islamic securities (sukuk) play a role in controlling inflation due to the reduction of liquidity and also provide financing for construction and investment projects. The purpose of this research is the impact of inflation on some economic variables with an emphasis on Islamic securities. The statistical data used in this research were from the Central Bank of the Islamic Republic of Iran and the World Bank for the years 1389-1400 and were extracted annually and Eviews 11 software was used to estimate the proposed equation. After examining the validity of the data, the results obtained from the Fully Modified Ordinary Least Squares (FMOLS) test show that sukuk as a percentage of GDP as well as the real GDP variable has a significant negative impact on inflation. This effect is significant for the free exchange rate