Sukuk Market and Economic Welfare Nexus: A Partial Equilibrium Approach
Due to its distinctive features and investment quality, sukuk as an Islamic alternative to bond financing, have known last decades a worldwide interest and a rapid widespread, particularly after the 2007-2008 global financial crisis. Despite the global market prevalence of sukuk, the literature on t...
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| Published in: | International journal of economics and financial issues 2021-06, Vol.11 (3), p.142-145 |
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| Main Author: | |
| Format: | Article |
| Language: | eng |
| Online Access: | Get full text |
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| Summary: | Due to its distinctive features and investment quality, sukuk as an Islamic alternative to bond financing, have known last decades a worldwide interest and a rapid widespread, particularly after the 2007-2008 global financial crisis. Despite the global market prevalence of sukuk, the literature on the sukuk – economic wealth nexus still inexistant. In this study, we develop a basic model that captures the welfare effects of sukuk markets. The main finding shows the importance of a well-developed sukuk market in hedging interest rate and inflation risks effectively and, thereby improving investor welfare. Keywords: Sukuk, Economic welfare, Partial equilibrium JEL Classifications: D53 G15 D60 DOI: https://doi.org/10.32479/ijefi.11507 |
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| ISSN: | 2146-4138 2146-4138 |