The rise of Islamic Insurance (Takaful) and impact on economic growth: A multi-country study

Muye, Ibrahim, Hasan, A.F.S. and Karbhari, Yusuf ORCID: https://orcid.org/0000-0003-4513-0928 2025. The rise of Islamic Insurance (Takaful) and impact on economic growth: A multi-country study. Taghizadeh, F., Thaker, H.M.T., Bhatti, M. I. and Pitchay, A., eds. Islamic Financial Markets and Institutions: Challenges, Financial Stability, and Inclusivity, Contributions to Economics, Springer Nature, pp. 301-315. (10.1007/978-981-96-8650-6_14)

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Abstract

This study examines the global expansion of Takaful insurance and evaluates its impact on economic development in 22 Muslim-majority countries. Utilizing the difference GMM technique, we find strong evidence of a positive and significant effect from the Takaful sector on economic growth. We report a robust positive and significant link between trade and a positive but insignificant relationship between CPI and economic growth with government consumption being negative. Our results provide support for the supply-leading hypothesis in the finance growth literature. We conclude that this alternative form of insurance is an important catalyst for economic development.

Item Type:	Book Section
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Publisher:	Springer Nature
ISBN:	9789819686490
Last Modified:	13 Mar 2026 14:22
URI:	https://orca.cardiff.ac.uk/id/eprint/173884

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