THE SIGNIFICANCE INFLUENCE OF ISLAMIC FINANCE ON ASEAN FINANCIAL STATECRAFT syafrina machfud
Airlangga university
Abstract
Banking and Finance around the world is also being challenged by the emerging geopolitical context. Geopolitical economy powershift- particularly among the US, and China will push further regionalization of the global economy between these big economies. This powershift includes a change in the value of power in military, economic and technological aspects in the age of globalisation. Previous studies has recognised the ongoing leadership and influence competition between the West and Asia, which has included the development of collective financial statecraft tools.
Islamic Banking and Finance (ISBF), since its expansion, creates a link between new geographies and financial power. ISBF is now become a feature of financial landscapes and represents a key trend in global finance over the last 15 years (Pollard and Samers, 2007) and Islamic movement (Henry and Wilson, 2012). This purpose of this paper is to examine the the significance influence of Islamic Finance (IF) in OIC financial statecraft as a political economy tool in achieving geopolitical economy security objectives and other economic goals in Indo-pacific by creating path analysis and testing on hypothesis using Multi layer feed-forward Neural network.
This paper adds to the existing research on methods to ISBF by integrating the concept of national power indicators, Monetary and financial profile indictors and Geopolitical economics.
This study hopes to illuminate the decision and policy making process for government, legislator, investors and practitioner to fully appreciate the role of ISBF either to promote, prevent or permit the regional economic framework made by the US and/or China in Indo-Pacific in a form of policy options
Keywords: Financial statecraft, geopolitical economy, Islamic banking and finance
