Publication:
Increasing Financial Inclusion in the Muslim World: Evidence from an Islamic Finance Marketing Experiment

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creativeworkseries.issn1564-698X
dc.contributor.authorKarlan, Dean
dc.contributor.authorOsman, Adam
dc.contributor.authorShammout, Nour
dc.date.accessioned2023-12-20T20:04:52Z
dc.date.available2023-12-20T20:04:52Z
dc.date.issued2020-05-12
dc.description.abstractLow utilization of household credit in developing countries may be partially due to religious considerations. In a randomized marketing experiment in Jordan, this paper estimates the effect of sharia-compliant loan features on demand for credit. To comply with Islamic law, the sharia-compliant product uses a bank fee rather than an interest payment structure, while keeping the rest of the product features very similar. Sharia-compliance increased the application rate for loans from 18 percent to 22 percent, an increase in demand that is equivalent to a 10 percent decrease in interest rates. This study also randomly varied the price of the sharia-compliant loan and finds that less religious individuals are twice as elastic with respect to price as the more religious. By comparing reasons for refusal across treatment groups, this paper estimates that survey measures that try to assess the importance of religious objections to conventional credit overestimate the importance of this type of objection by a third.en
dc.identifier.citationThe World Bank Economic Review
dc.identifier.doi10.1596/40782
dc.identifier.issn0258-6770 (print)
dc.identifier.issn1564-698X (online)
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40782
dc.language.isoen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subjectISLAMIC FINANCE
dc.subjectMICROCREDIT
dc.subjectRELIGION
dc.subjectCREDIT ELASTICITY
dc.subjectMARKETING
dc.titleIncreasing Financial Inclusion in the Muslim Worlden
dc.title.subtitleEvidence from an Islamic Finance Marketing Experimenten
dc.typeJournal Article
dspace.entity.typePublication
okr.associatedcontenthttps://academic.oup.com/wber/article/35/2/376/5836203 Journal website (version of record)
okr.crossref.titleIncreasing Financial Inclusion in the Muslim World: Evidence from an Islamic Finance Marketing Experiment
okr.date.disclosure2023-12-20
okr.doctypePublications & Research
okr.doctypePublications & Research::Journal Article
okr.identifier.doidoi.org/10.1093/wber/lhaa010
okr.identifier.doihttp://dx.doi.org/10.1596/40782
okr.language.supporteden
okr.pagenumber376–397
okr.peerreviewAcademic Peer Review
okr.region.geographicalWorld
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Financial Literacy
okr.volume35 (2)
relation.isJournalIssueOfPublicationd521bf81-b3df-4cd0-914b-c88842ba5a68
relation.isJournalIssueOfPublication.latestForDiscoveryd521bf81-b3df-4cd0-914b-c88842ba5a68
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication3a13adfa-b971-4f6d-9aaa-21ba96efc218
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