Islamic finance and food commodity trading: is there a chance to hedge against price volatility and enhance food security?

Can agricultural trade improve total factor productivity? Empirical evidence from G20 countries

Improving agricultural total factor productivity is essential to achieving the high-quality and sustainable development of agriculture. As major global agricultural producers, the G20 countries play an important role in agricultural product trade and development. As such, it is well-positioned to play a positive role in improving agricultural total factor productivity. This paper uses the DEA-Malmquist index method to measure agricultural total factor productivity (TFP) in G20 countries from 2010 to 2019, and analyzes the impact of agricultural trade on TFP using the two-way fixed effects model. It finds that (1) the main source of agricultural TFP growth in G20 countries is technical progress, while the effect of technical efficiency on agricultural TFP is not obvious. (2) Agricultural trade can significantly improve agricultural TFP growth in G20 countries, and the effect is more obvious in developed countries. From the perspective of trade flow, the positive effect of export trade on agricultural TFP is stronger. (3) The institutional environment strengthens the improvement effect of agricultural trade on agricultural TFP. Thus, this study not only provides valuable insight into the relationship between agricultural trade and agricultural productivity, but also offers a strong argument in favor of the formulation of relevant policies to improve agricultural productivity and promote a more sustainable agricultural sector.

Measuring the macroeconomic determinants of agricultural price volatility: Implications for natural resource commodity prices for green recovery

With rapid growth, green economic recovery has been a key agenda for the globe. However, the price volatility for natural resources plays a significant role in reshaping the green recovery. Therefore, the current study investigates the impact of green recovery, hum, a capital index, GDP growth, foreign direct investment and inflation on natural resource volatility in China from 1995 to 2020. In order to investigate the long-term association among selected variables, this study employs the Autoregressive Distributive Lag (ARDL) model. In addition, the current research uses the Aikaik information (AIC) criteria for the model selections. Obtained outcomes show the significant contribution of green recovery, human capital, GDP growth, FDI and inflation increase the natural resource price volatility level. However, to validate the results of ARDL, this study also used the ECM approach and validated the prior findings. On behalf of outcomes, the current study implies some imperative policies to attain the desired objective for green growth.

An assessment on Islamic banking ethics through some salient points in the prophetic tradition

Indonesia is experiencing a stable and rapid Islamic economy process since the emergence of Islamic banking. Asides from the development, some scholars argued that Islamic banking does not completely comply with primary Islamic obligations, such as ethics. The use of sharia banking is preferred in Indonesia, even though it only upholds one foundation in Islamic teaching. Therefore, it is imperative to present Islamic banking's ethical foundations with strong support from early teachings and test it empirically. This research presents several original concepts of Islamic ethics in the form of prophetic messages and teaching of Muhammad (peace be upon him), namely Iman (faith), Niyyah (intention), Amanah (trust), and 'Adalah (justice). The confirmatory composite analysis (CCA) was used to assess the four terms to 411 Islamic banking employees in the Indonesian context. The result showed that salient points in measuring employee ethics need to be ethical in all circumstances. This movement tends to positively provide a multiplier effect in the banking management and potentially serve as the educational function to the communities.

The Response of Islamic Financial Service to the COVID-19 Pandemic: The Open Social Innovation of the Financial System

Novel Coronavirus, also known as COVID-19, is a health emergency that is having an ever-growing impact on the global economy. COVID-19 has caused economic disruption at an unprecedented speed and scale. The economic costs it will bring to society can only be measured in times to come. Millions of people across the globe have already become unemployed, and similarly, millions of businesses have either shut down or are on the verge of collapse. It is a great challenge for policymakers to minimize the economic impact of COVID-19 and put the economy on a growth trajectory once again. Unfortunately, there is so far no country in the world that can be viewed as a role model for its economic response to the COVID-19 pandemic. The present study proposes Islamic finance as a potential tool to help affected economies safely pass through the economic crisis resulting from the pandemic. This study identifies a four-stage COVID-19 model and proposes ten innovative Islamic financial services for each stage of the pandemic. In addition, it analyzes how these services can be effectively utilized at different stages to overcome the economic damage caused by the pandemic.