DefinePK

Abstract

The study examines the relationship between economic growth and Islamic baking performance in Pakistan from 2006-2022, using data from the World Development Indicators. The study has used Islamic banking performance as dependent variable while, GDP growth rate, CPI, and FDI are independent variables. It employs the Augmented Dicky Fuller unit root test and ARDL cointegration approach to analyze long-term and short-term relationships. The ARDL cointegration analysis reveals a long-term relationship between variables, with an increase in GDP growth rate, CPI, and FDI causing a decrease in Islamic banking performance. The ECM term confirms no short-run relationship, rejecting the assumption of a short-run relationship.