Islamic Finance: A Bulwark against Crisis?

Article ID

V7423

Islamic Finance: A Bulwark against Crisis?

Dr. Hatem Derbel
Dr. Hatem Derbel University of West Paris Nanterre La Defense
Neila Dammak
Neila Dammak
Ali Chkir
Ali Chkir
DOI

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.

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.

Dr. Hatem Derbel
Dr. Hatem Derbel University of West Paris Nanterre La Defense
Neila Dammak
Neila Dammak
Ali Chkir
Ali Chkir

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Dr. Hatem Derbel. 2012. “. Global Journal of Human-Social Science – C: Sociology & Culture GJHSS-C Volume 12 (GJHSS Volume 12 Issue C11): .

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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS Volume 12 Issue C11
Pg. 101- 113
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Islamic Finance: A Bulwark against Crisis?

Dr. Hatem Derbel
Dr. Hatem Derbel University of West Paris Nanterre La Defense
Neila Dammak
Neila Dammak
Ali Chkir
Ali Chkir

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