The Role of Islamic Finance, Workers, and Added Value in the Agromaritime Sector on Economic Growth: A Study of Indonesia, Malaysia, and Brunei Darussalam

Tajul 'Ula; Juli Dwina Puspita  Sari; Putri Ulifas Sahira; Erne Suzila Kassim

doi:10.29244/jam.14.1.1-15

Authors

Tajul 'Ula Program Studi Ekonomi Syariah, Institut Agama Islam Negeri Langsa, Jl. Meurandeh, Kampus IAIN Langsa Meurandeh, Kota Langsa 24411, Aceh, Indonesia
Juli Dwina Puspita Sari Program Studi Ekonomi Syariah, Institut Agama Islam Negeri Langsa, Jl. Meurandeh, Kampus IAIN Langsa Meurandeh, Kota Langsa 24411, Aceh, Indonesia
Putri Ulifas Sahira Program Studi Ekonomi Syariah, Institut Agama Islam Negeri Langsa, Jl. Meurandeh, Kampus IAIN Langsa Meurandeh, Kota Langsa 24411, Aceh, Indonesia
Erne Suzila Kassim Center of Applied Management Studies, Universiti Teknologi MARA, Jl. Raya 6, Kampus UiTM Cawangan Seulangor, Puncak Alam 42300, Selangor, Malaysia

DOI:

https://doi.org/10.29244/jam.14.1.1-15

Keywords:

Added value, agromaritime sector, economic growth, Islamic finance, labor

Abstract

The agromaritime sector faces various problems that hinder its potential to contribute optimally to economic growth. This study aims to analyze the role of Islamic finance sharing in the agromaritime sector, agricultural sector labor, and the added value of the agromaritime sector on economic growth in Indonesia, Malaysia, and Brunei Darussalam from 2019Q1 to 2023Q4 using the Autoregressive-Distributed Lag (ARDL) panel data model. The results of the analysis revealed that all independent variables showed a significant impact on economic growth in the long and short term. Islamic finance is able to provide alternative financing to encourage the agromaritime sector that supports inclusive economic activities. In addition, labor in the agricultural sector also plays a negative significant role on economic growth, indicating that improving the quality and quantity of labor in this sector can accelerate economic growth. The added value of the agromaritime sector has proven to contribute positively to economic growth. These findings underscore the importance of integrating Islamic finance with the development of the agromaritime sector and improving the quality of labor to achieve sustainable economic growth.

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