Analysis of The Interaction and Contribution of The Islamic Human Development Index (IHDI) and Total Islamic Banking Assets in Indonesia's Economic Growth With an Auto Regression (VAR) Approach
DOI:
https://doi.org/10.59188/eduvest.v4i12.50006Keywords:
Islamic Human Development Index (IHDI), Islamic Banking, Vector Autoregression (VAR)Abstract
This study investigates the interaction and contribution of the Islamic Human Development Index (IHDI) and total Islamic banking assets to Indonesia's economic growth during the period 2010-2023 using the Auto Regression (VAR) approach. The results show that both independent variables have a positive and significant influence on economic growth, confirming the important role of Sharia economics in national economic development. This research highlights the need for the integration of Islamic values in human development and the financial sector to encourage sustainable economic growth. Suggestions for future research include increasing the integration of IHDI in public policy and further development of the Islamic financial sector as a driver of the national economy. These findings provide new insights for policymakers and practitioners in designing inclusive and sustainable economic strategies.
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