Testing the causality relationship between Islamic sukuk and economic growth in Malaysia Econometric study during the period 2001-2019

Abstract

This studyaims to test the causal relation ship between Islamicsukuk and economicgrowth in Malaysia during the period (2001-2019) by using the Engel Granger test and estimating the simple regressionequationusing the least squares method. The results showed the stability of the time series of the two variables at the first difference using the extended Dickey-Fuller test and Philips-Peron. The study concluded that there is a one-way causal relationship between Islamic sukuk and economic growth, meaning previous changes in Islamic sukuk explain the current changes in economic growth