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Islamic Banking and Finance: Recent Empirical Literature and Directions for Future Research

Abedifar, P.; Ebrahim, S.; Molyneux, P.; Tarazi, A.

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Authors

P. Abedifar

P. Molyneux

A. Tarazi



Abstract

This paper examines the recent empirical literature in Islamic banking and finance, highlights the main findings and provides a guide for future research. Early studies focus on the efficiency, production technology and general performance features of Islamic versus conventional banks, whereas more recent work looks at profit-sharing and loss-bearing behaviour, competition, risks as well as other dimensions such as small business lending and financial inclusion. Apart from key exceptions, the empirical literature suggests no major differences between Islamic and conventional banks in terms of their efficiency, competition and risk features (although small Islamic banks are found to be less risky than their conventional counterparts). There is some evidence that Islamic finance aids inclusion and financial sector development. Results from the empirical finance literature, dominated by studies that focus on the risk/return features of mutual funds, finds that Islamic funds perform as well, if not better, than conventional funds – there is little evidence that they perform worse than standard industry benchmarks.

Citation

Abedifar, P., Ebrahim, S., Molyneux, P., & Tarazi, A. (2015). Islamic Banking and Finance: Recent Empirical Literature and Directions for Future Research. Journal of Economic Surveys, 29(4), 637-670. https://doi.org/10.1111/joes.12113

Journal Article Type Article
Acceptance Date Apr 20, 2015
Publication Date Sep 1, 2015
Deposit Date Apr 21, 2015
Publicly Available Date Mar 28, 2024
Journal Journal of Economic Surveys
Print ISSN 0950-0804
Electronic ISSN 1467-6419
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 29
Issue 4
Pages 637-670
DOI https://doi.org/10.1111/joes.12113
Keywords G21, G23.
Public URL https://durham-repository.worktribe.com/output/1406918

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Copyright Statement
This is the accepted version of the following article: Abedifar, P., Ebrahim, S. M., Molyneux, P. and Tarazi, A. (2015), Islamic banking and finance: recent empirical literature and directions for future research. Journal of Economic Surveys, 29(4): 637-670, which has been published in final form at http://dx.doi.org/10.1111/joes.12113. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.




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