The Impact of Jordan’s Conventional and Islamic Banking Development Factors on Economic Growth

Abstract

This study aimed to explore the impact of Jordan’s Conventional and Islamic Banking Development Factors on Economic Growth during the period (2000-2015). A sample of four Islamic banks and eight conventional banks was tested. A group of statistical methods such as Multiple Regression, Correlation, Variance Inflation Factor (VIF), T-Test, were applied. The study found that there is significant different between the impact of Conventional and Islamic Banking Factors on RGDP attributed to Total Assets, Liquid Assets, Total Deposits and Total Facilities.In addition, Islamic banks had a much impact on Economic growth as compared to conventional banks. The study recommended the Islamic Banking Sectorto introduce a new innovative financial instruments and tools to push the economic growth forward and to increase the investment opportunity and lead to higher contribution to Economic Growth in Jordan.