Purpose

The purpose of this paper is to explore the effects of the capital market on economic growth by considering the role of ṣukūk (Islamic investment certificates) and other capital market sub-components in Malaysia between 1998 and 2018.

Design/methodology/approach

The empirical investigation is based on the autoregressive distributed lag (ARDL) cointegration bounds test.

Findings

The results reveal the prevalence of a long-run equilibrium relationship between capital market variables and economic growth. As expected, bond market components (ṣukūk and conventional bonds) have a positive, albeit insignificant influence on economic growth. In contrast, in the long-term, stock market development – regardless of the indicator used on economic growth – is shown to have a significant and positive effect. The study suggests that stock market sub-components affect Malaysia’s economic growth the most.

Research limitations/implications

The primary limitation of this study is that only corporate ṣukūk were considered, while government ṣukūk were excluded from the estimation due to a lack of requisite information, resources and data.

Practical implications

A strategic framework should be established, especially in pricing efficiencies. Furthermore, there is a need to create more awareness on the benefits of ṣukūk investment among conventional bond investors, including retail investors. Thus, there will be more players in the ṣukūk market, and this will help to improve market liquidity.

Originality/value

Apart from conventional capital market sub-components, this study takes into account ṣukūk as a sub-component in the capital market on economic growth using the ARDL framework. Also, this study particularly concentrates on the world’s largest ṣukūk issuer, Malaysia, rather than focusing on other ṣukūk-issuing countries.

中文翻译：

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马来西亚的资本市场和经济增长：ṣukūk 和其他子组件的作用

目的

本文的目的是通过考虑ṣukūk（伊斯兰投资证书）和 1998 年至 2018 年马来西亚其他资本市场子组件的作用，探讨资本市场对经济增长的影响。

设计/方法/方法

实证研究基于自回归分布滞后 (ARDL) 协整边界检验。

发现

结果揭示了资本市场变量与经济增长之间长期均衡关系的普遍性。正如预期的那样，债券市场成分（ṣukūk和传统债券）对经济增长有积极的影响，尽管影响不大。相比之下，从长远来看，股票市场的发展——无论使用何种指标来衡量经济增长——都显示出显着的积极影响。该研究表明，股票市场子成分对马来西亚的经济增长影响最大。

研究限制/影响

这项研究的主要限制是只考虑了企业ṣukūk，而由于缺乏必要的信息、资源和数据，政府ṣukūk被排除在估计之外。

实际影响

应该建立一个战略框架，特别是在定价效率方面。此外，需要让包括散户投资者在内的传统债券投资者更加了解ṣukūk投资的好处。因此，ṣukūk市场将有更多参与者，这将有助于提高市场流动性。

原创性/价值

除了传统的资本市场子组件外，本研究还使用 ARDL 框架将ṣukūk作为经济增长的资本市场子组件考虑在内。此外，这项研究特别关注世界上最大的ṣukūk发行国马来西亚，而不是其他ṣukūk发行国。