Some researchers have argued that the financial system has a vital role in economic growth. Islamic banking that has existed widely in many countries is expected to have a positive role in economic growth. This study aims to examine the impact of Islamic bank financing on economic growth in QISMUT countries. To compare with other full Islamic banking systems, Iran and Sudan also included in this study. By using annual panel data (2005-2015), this paper utilizes an approach to multiple mediating analysis models. The findings demonstrate that Islamic banking financing does not significantly impact economic growth directly. However, Islamic banking financing can possibly influence economic growth indirectly through investment and consumption spending. ======================================================================================================== Bagaimanakah Peran Perbankan Syariah dalam Pertumbuhan Ekonomi? Beberapa peneliti berpendapat bahwa system keuangan memiliki peran penting dalam pertumbuhan ekonomi. Perbankan Islam yang telah ada secara luas di banyak negara diduga memiliki peran positif dalam pertumbuhan ekonomi. Penelitian ini bertujuan untuk menguji peengaruh pembiayaan bank Islam pada pertumbuhan ekonomi di negara QISMUT. Iran dan Sudan dimasukkan dalam objek penelitian ini sebagai pembanding penggunaan sistem keuangan Islam. Menggunakan data panel tahun 2005-2015, penelitian ini menggunakan pendekatan analisis media dengan banyak faktor. Hasil penelitian menunjukkan bahwa pembiayaan bank Islam tidak dapat mempengaruhi pertumbuhan ekonomi secara langsung. Akan tetapi, Bank Islam dapat mempengaruhi pertumbuhan ekonomi secara tidak langsung, yaitu melaui investasi dan konsumsi.

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How does islamic banking support economics growth

Shaping of prices of agricultural raw materials results from the impact of a wide range of factors that influence prices in different links in the marketing chain. Political changes, especially sudden ones, which abruptly changed farming conditions, were one of the reasons for the asymmetry in price transmission. The main purpose of the paper was to estimate the trends in changes in agricultural raw materials prices in comparison to the trends in food prices in Poland in two time frames, differing in political and economic conditions: before (1999–2004) and after Poland’s accession (2005–2019) to the European Union. It was found that the accession to the EU improved the situation of farmers in agricultural markets. There was a reversal of downward price trends in agricultural raw materials and their stabilization. In the years 1995–2005, for most of the prices of agricultural raw materials and food under the analysis, the differences between the trends were not statistically significant. This situation was consistent with the model of market operating under perfect competition. The trends in the prices of wheat, rolls, and bread, as well as the prices of livestock for slaughter-pigs and roast beef were the only exceptions. In turn, in the years 2005–2019 statistically significant differences between the trends in the prices of agricultural raw materials and food were recorded for wheat, bread, and flour; milk, butter, and cottage cheese; eggs and egg retail prices; as well as livestock for slaughter, cattle, and sausages. No statistically significant differences were found for the remaining relationships of the analyzed prices of agricultural raw materials and food. These data indicate a different level of price transmission depending on the product group.

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Changes in the Price of Food and Agricultural Raw Materials in Poland in the Context of the European Union Accession

Common agricultural policy (CAP) is a factor of development and cohesion of the European Union(EU) agriculture. The fundamentals of CAP were defined in the 1950s, when the Union was formed.Since then, CAP has been reforming and adapting to new circumstances. Treaty on the Functioningof the European Union defines the goals of CAP: stable (acceptable) prices of agricultural products,growth, productivity and technological progress in agriculture, growth in farmers’ income andsupplying the common market. Factor analysis of the prices and production goals of CAP directlyor indirectly involves the following variables: prices of agricultural and industrial products, indicesof the prices of cereals, meat and milk, indices of the prices of agricultural products in France andGreat Britain, agricultural GDP and EU GDP. The analysis results come down to 2 factors. The first –“internal factor” is a set of indicators homogenous in terms of greater impact of CAP on their trends(the prices of agricultural products in France, income from agriculture, the prices of agriculturalproducts in EU and Great Britain and the milk price index). The second - “external factor” is madeof general and global indicators (cereals prices, EU GDP and prices in industry). Factor analysis hasconfirmed high correlation of goals: production growth, productivity and technological progressin agriculture as well as “reasonable” prices in agriculture. The analysis shows high correlationbetween agricultural and industrial products, indices of the prices of cereals, meat and milk, indicesof the prices of agricultural products in France and Great Britain, agriculture GDP and EU GDP(classified into internal and external factors). In general, the results of the factor analysis justify theexistence of CAP, while the EU budget support brings wider social benefits.

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Factor analysis of prices and agricultural production in the european union

Thoroughly revised and updated, the second edition of this highly acclaimed textbook will be required reading for graduate and undergraduate students on a wide range of courses including: European economics, economic policy, European integration, European studies and international relations. Exploring the EU at an important turning point and during uncertain and turbulent times, the text will also prove an invaluable reference tool for academics and policy makers concerned with any facet of European integration.

The Economics of European Integration, Second Edition

Abstract This paper compares the main intersectoral and national agricultural institutions in Russia and Switzerland during the period 2004–2019 and uses data from the Food and Agriculture Organization (FAO), an ordinary least squares model and fixed-effects models to assess the contributions of governments, sectoral producer organisations and companies to agricultural producer price stability. We find significant correlations of price stability with institutional settings that increase actor flexibility—namely a high share of imports in consumption and embedding the supply chain into a network. Our results show that agricultural producer price stability in Russia and Switzerland does not decrease during the period 2004–2019 and depends on both institutional conditions and economic factors. 

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Institutional contributions to agricultural producer price stability

Agricultural sector in the EU functions under strong inﬂuence of the CAP. EU finances the measures to support production of agricultural products and food. CAP is founded on the goals of ensuring price stability. Correlation and regression analysis have largely confirmed the given hypotheses. General price levels in EU, as well as the prices of agricultural products have been stable, as shown by the respective trend line equations. Correlation and regression analysis of support for agricultural production and prices of agricultural products indicate a moderate correlation level, i.e. the support contributes to price stability. Correlation analysis confirms the inﬂuence of prices of industrial products on the prices of agricultural products. Results of price movement analysis of agricultural products and foods on one hand, and independent variables affecting prices on the other, show that CAP objectives have been mainly accomplished. Thus, interventionism in agriculture brings economic effects and justifies the CAP measures.

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Price stability of agricultural products in the european union

The economy of the Republic of Srpska is burdened by inherited (structural) issues and a sluggish adjustment of the current economic policy to the contemporary global trends. According to the standards of the WB, IMF and Kuznets, the Republic of Srpska is classified as a small economy. Just like Bosnia and Herzegovina or any other countries of Western Balkans, it too is finalising the transition to a market economy. The Republic of Srpska features insufficient GDP growth rates. Under such circumstances, there is a need for enticement of GDP growth. Consumption (both final and public) as well as all forms of investment affect economic growth, with FDIs having a particularly important role. In most countries, there is a positive correlation between investment and GDP growth. Likewise, there is a positive correlation between GDP growth and final consumption. Therefore, the Republic of Srpska, as well as any other small economy, resorts to attracting investments and increasing final consumption. However, the issue is that public debt maintains its growing trend in most of such transitional economies. This paper contains the quantification of the impact of investments and consumption onto the GDP of the Republic of Srpska. It has been proven that the final consumption and investments affect GDP growth in the Republic of Srpska. Correlation-regression analysis confirmed a positive correlation between the mentioned variables. This development policy affects the continuous growth of public debt and brings the increase in the share of government (public) consumption in total consumption. In addition, it also affects the insufficient efficiency of investments. As a consequence, low productivity and insufficient competitiveness emerge, followed by the occurrence of other economic and social problems. Therefore, the Republic of Srpska and Bosnia and Herzegovina need to complete the initiated reforms and expedite their EU integration, modernize and restructure their industry as per the requirements of the global market, reduce the costs of public institutions and increase their overall competitiveness.

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Impact of Consumption and Investment onto Growth: An Example of the Republic of Srpska

The European Union is the most complex and by any aspect the most unique example of a regional economic integration. Its origin, evolution and survival are based on a common legislative and institutional framework. The so-called common policies implemented in a number of economic and non-economic areas are particularly distinctive. Most of them are implemented on two levels: national and communal. The only common policy that is fully implemented at the European Union level is the Community Agrarian Policy (CAP), whereas the agriculture has the highest expenditure in the communal budget. The function of CAP is primarily economic as its goals are strictly related to economic issues: price stability of agricultural products, productivity growth, higher wages for the farmers, etc. The CAP strengthens the Union’s social cohesion, which is of utmost importance in times of constant crises, BREXIT and other extreme instabilities. For this reason, the CAP has been in the processes of continuous reforms (MacShary, Mansholt and those of recent times) for decades, in order to increase its efficiency and justify enormous financial investments. The CAP results depend on the achievement of preset objectives and the exchange of agricultural products and food that the European Union generates globally. It has been demonstrated that the CAP is a significant common policy, both in achieving economic goals and in the sphere of strengthening communal cohesion.

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Aleksandar Đukić

Papers

Price stability of agricultural products in the european union

Impact of Consumption and Investment onto Growth: An Example of the Republic of Srpska

Reforms of the community agrarian policy: misconception or new agricultural architecture?