A project Undertaken as Part of bsc (Hons) Economics with Finance degree, Westminster International University in Tashkent

Methodology

Economic models and estimated methods will be discussed in this section of the paper based on the selected model.
As far as this paper empirically studies The Impact of Islamic Banking on Entrepreneurial Motivation and Medium Enterprises Performance in Malaysia, annual time series data from 1984 to 2017 will be used in this research. The main source of the data is World Bank.
How Islamic bank can contribute on real GDP has been researched in this part by taking into consideration that all traditional banks are excluded. By excluding the conventional banks, we only think about Islamic banking financing system in the economy. The examination mirrors the Islamic banks' accounting report insights, genuine financial development of Malaysia and a few picked control variables. In order not to face omitted variable biasedness, base rate, inflation, economic growth and return to investment are used as other variables. By using these variables, we focus on the model bellow:
Motivation_t+1= β₀ + β₁return_on_investment_t + β₂gdpgrowth_t+ β₃inflation_t + β₄base rate_t + β₅Islam_bank_t + ε

Variable	Description
regbus	Number of registered businesses (in millions) is the proxy for measuring motivation variable
dgdp	First order difference of GDP growth
tf_ratio	Ratio of total financing of Islamic banking to nominal GDP