Journal of King Abdulaziz University-Islamic Economics
Islamic finance came to prominence in the last two decades and Islamic instruments have been rega... more Islamic finance came to prominence in the last two decades and Islamic instruments have been regarded as an alternative to conventional instruments after the 2008 crisis. In this study, we tried to analyze the relationship between conventional deposit rates and profit share rates of participation banks (Islamic banks) in Turkey by employing both static modeling tools including ARDL, FMOLS and DOLS models and dynamic modeling tools including DCC-GARCH models using monthly data from Turkey covering the 1998-2016 period. According to our knowledge, this is the first study that employs a dynamic model to investigate the relationship between conventional deposit rates and profit share rates of participation banks. Accordingly, it is found that conventional deposit rates significantly affect profit share rates and the dynamic correlation between conventional deposit rates and profit share rates is generally stable around 0.9 when the markets are not disturbed by shocks or crises. Nevertheless, the correlation dramatically fluctuates during periods of stress. Our model managed to capture the effects of the two financial crises (2001 and 2008) on deposit and profit share rates indicating that the correlation between the two rates plummets during crisis periods. However, despite some similarities during the 2001 and 2008 crises, the behavior of the correlation completely differs during the two recovery periods. The correlation recovered pretty fast during the 2001 crisis and remained stable for almost 9 years. As for the 2008 crisis, the correlation recovered rather slowly (in 14 months) and has failed to stabilize since then. In our opinion, this distinction arises due to the ongoing unfavorable political and economic conditions in neighboring countries and the EU members who are the main trade partners of Turkey.
The book was first published in 2016 by Routledge. It has 12 chapters and 260 pages. The author o... more The book was first published in 2016 by Routledge. It has 12 chapters and 260 pages. The author of the book, Professor Masudul Alam Choudhury, is a very famous academic scholar in the field of Islamic economics and finance, especially in addressing the epistemological underpinnings of Islamic economics and finance. He has published numerous books and articles in the field of Islamic economics and finance. Moreover, he has lectured and did research in many prestigious universities including Harvard and Oxford. A brief summary of the book is given in the following paragraphs.
International Journal of Islamic Economics and Finance Studies
Toplumsal ve iktisadi hayattaki gelişmelere parallel olarak yeni iktisadi realitelerle karşı karş... more Toplumsal ve iktisadi hayattaki gelişmelere parallel olarak yeni iktisadi realitelerle karşı karşıya kalmaktayız. Dolayısıyla ekonomi alanında kafa yoranların görevlerinlerinden biri ve belki de en önemlisi bu yeni realiteler karşısında toplumsal ihtiyacı karşılayacak şekilde yeni yaklaşımlar ortaya koymaktır. İslam ekonomisi alanında çalışan iktisatçılar için de durum bundan farklı değildir. Dolayısıyla bu çalışmada islamin ilk dönemlerinde başarı ile uygulanan bazı bilgilerin/kurumların İslamileştirilmesi veya islami normlara uygun yeni bilgiler/kurumlar üretilmesi uygulamasının günümüzde ne derece mümkün olacağı üzerine değerlendirme yapmayı ümit ediyoruz. Bu amaçla ile ilgili olarak Hz. Peygamber (s.a.v.) ve hemen sonrası dönemde iktisadi alanda yapılan yeni bilgi üretimi veya mevcut bilgilerin İslamileştirilmesi sürecinde izlenen metodoloji üzerinde durulduktan sonra, günümüzde islami iktisat alanında bilgi üretimi ile ilgili metodoloji konusuna değinilecektir. Yeni bilgi üretimi konusu gündene gelince akla gelen ilk konulardan biri olan bid’at meselesi de bu kapsamda detaylı bir şekilde değerlendirildikten sonra islam iktisadında yeni bilgi üretimi veya mevcut iktisadi bilgilerin/kurumların islamileştirilmesi konusunda nasıl bir metodolaoji izlenmesi gerektiği ile ilgili olarak bir sonuca varılmaya çalışılacaktır. In fact, we face new economic realities parellel to the developments in economic and social life. Accordingly, one of the most important duties of the economists including the ones who study islamic economics is to develop new approaches to meet these new social needs. Hence, in this paper, we hope to assess if it is possible to develop new approaches/economic institutions in the islamic economics field as in the case of early period of islam. For this purpose, we will first discuss the methodology while generating new knowledge or islamification of current economic units/institutions in the time of Prophet Hz. Muhammed (s.a.v) and just after his time. Then, we will touch on the methology issue while developing new aproaches in the islamic economics at the present time. Within this framework, since we think that the subject of bid’at is very crucial, we are going to analyze this issue in this context. Finally, we will try to conclude what kind of methodology should be implemented in the subject of islamification of current economic institutions and generation of new information in the field of islamic economics.
Journal of King Abdulaziz University-Islamic Economics
Islamic finance came to prominence in the last two decades and Islamic instruments have been rega... more Islamic finance came to prominence in the last two decades and Islamic instruments have been regarded as an alternative to conventional instruments after the 2008 crisis. In this study, we tried to analyze the relationship between conventional deposit rates and profit share rates of participation banks (Islamic banks) in Turkey by employing both static modeling tools including ARDL, FMOLS and DOLS models and dynamic modeling tools including DCC-GARCH models using monthly data from Turkey covering the 1998-2016 period. According to our knowledge, this is the first study that employs a dynamic model to investigate the relationship between conventional deposit rates and profit share rates of participation banks. Accordingly, it is found that conventional deposit rates significantly affect profit share rates and the dynamic correlation between conventional deposit rates and profit share rates is generally stable around 0.9 when the markets are not disturbed by shocks or crises. Nevertheless, the correlation dramatically fluctuates during periods of stress. Our model managed to capture the effects of the two financial crises (2001 and 2008) on deposit and profit share rates indicating that the correlation between the two rates plummets during crisis periods. However, despite some similarities during the 2001 and 2008 crises, the behavior of the correlation completely differs during the two recovery periods. The correlation recovered pretty fast during the 2001 crisis and remained stable for almost 9 years. As for the 2008 crisis, the correlation recovered rather slowly (in 14 months) and has failed to stabilize since then. In our opinion, this distinction arises due to the ongoing unfavorable political and economic conditions in neighboring countries and the EU members who are the main trade partners of Turkey.
The book was first published in 2016 by Routledge. It has 12 chapters and 260 pages. The author o... more The book was first published in 2016 by Routledge. It has 12 chapters and 260 pages. The author of the book, Professor Masudul Alam Choudhury, is a very famous academic scholar in the field of Islamic economics and finance, especially in addressing the epistemological underpinnings of Islamic economics and finance. He has published numerous books and articles in the field of Islamic economics and finance. Moreover, he has lectured and did research in many prestigious universities including Harvard and Oxford. A brief summary of the book is given in the following paragraphs.
International Journal of Islamic Economics and Finance Studies
Toplumsal ve iktisadi hayattaki gelişmelere parallel olarak yeni iktisadi realitelerle karşı karş... more Toplumsal ve iktisadi hayattaki gelişmelere parallel olarak yeni iktisadi realitelerle karşı karşıya kalmaktayız. Dolayısıyla ekonomi alanında kafa yoranların görevlerinlerinden biri ve belki de en önemlisi bu yeni realiteler karşısında toplumsal ihtiyacı karşılayacak şekilde yeni yaklaşımlar ortaya koymaktır. İslam ekonomisi alanında çalışan iktisatçılar için de durum bundan farklı değildir. Dolayısıyla bu çalışmada islamin ilk dönemlerinde başarı ile uygulanan bazı bilgilerin/kurumların İslamileştirilmesi veya islami normlara uygun yeni bilgiler/kurumlar üretilmesi uygulamasının günümüzde ne derece mümkün olacağı üzerine değerlendirme yapmayı ümit ediyoruz. Bu amaçla ile ilgili olarak Hz. Peygamber (s.a.v.) ve hemen sonrası dönemde iktisadi alanda yapılan yeni bilgi üretimi veya mevcut bilgilerin İslamileştirilmesi sürecinde izlenen metodoloji üzerinde durulduktan sonra, günümüzde islami iktisat alanında bilgi üretimi ile ilgili metodoloji konusuna değinilecektir. Yeni bilgi üretimi konusu gündene gelince akla gelen ilk konulardan biri olan bid’at meselesi de bu kapsamda detaylı bir şekilde değerlendirildikten sonra islam iktisadında yeni bilgi üretimi veya mevcut iktisadi bilgilerin/kurumların islamileştirilmesi konusunda nasıl bir metodolaoji izlenmesi gerektiği ile ilgili olarak bir sonuca varılmaya çalışılacaktır. In fact, we face new economic realities parellel to the developments in economic and social life. Accordingly, one of the most important duties of the economists including the ones who study islamic economics is to develop new approaches to meet these new social needs. Hence, in this paper, we hope to assess if it is possible to develop new approaches/economic institutions in the islamic economics field as in the case of early period of islam. For this purpose, we will first discuss the methodology while generating new knowledge or islamification of current economic units/institutions in the time of Prophet Hz. Muhammed (s.a.v) and just after his time. Then, we will touch on the methology issue while developing new aproaches in the islamic economics at the present time. Within this framework, since we think that the subject of bid’at is very crucial, we are going to analyze this issue in this context. Finally, we will try to conclude what kind of methodology should be implemented in the subject of islamification of current economic institutions and generation of new information in the field of islamic economics.
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