IJRR

International Journal of Research and Review

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Year: 2024 | Month: October | Volume: 11 | Issue: 10 | Pages: 620-658

DOI: https://doi.org/10.52403/ijrr.20241058

Analysis of the Effect of Sharia Financing, Non-Profit Finance (NPF) and Human Development Index (HDI) Through Investment and Consumption on Economic Growth in Indonesia

Yusra1, Ahmad Albar Tanjung2, Irsad3

1Postgraduate Students, Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
2,3Postgraduate Lecturer, Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia

Corresponding Author: Yusra

ABSTRACT

This study is motivated by the phenomenon of the development of economic growth in Indonesia over the past fifteen years experienced fluctuations and the development of Islamic financing that helps the community in increasing its economic activities in consumption and production, as well as people's choices in choosing Islamic financing due to increased public awareness in Sharia transactions, as well as the encouragement of Sharia trends in Indonesia that increase investment and consumption in Indonesia. For this reason, academically, the researchers tried to parse it by analyzing the influence of Sharia financing, NPF and HDI through investment and consumption on economic growth in Indonesia.
This study uses a quantitative type of research, with data sources in the form of secondary data in the form of time series data, namely 15 years in Indonesia in the period 2009-2023. in this study the approach to processing using Path Analysis model as multiple data regression model with the help of SPSS Software.
The results of this study indicate that Islamic finance, NPF and HDI have a positive and significant effect on investment and only Islamic finance is significant for consumption and economic growth. While NPF and HDI have a positive and insignificant effect on consumption and economic growth. However, Sharia financing, NPF and HDI through investment and consumption have a positive and significant effect on economic growth in Indonesia.

Keywords: Economic Growth, Islamic Financing, NPF, HDI, Investment, Consumption

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