Contribution of Islamic Social Capital on Green Economic Growth in Malaysia

This paper studies the relationship between social capital on the green growth in Malaysia, with the aim of ascertaining whether faith based social capital has a role in sustaining economic growth. The study utilizes the annual data over the period of 1970-2015. This study employs the Auto-regressive Distributed Lag (ARDL) model and causality using the Vector Error Correction Model (VECM). The findings demonstrate the long and short-run associations between social capital and green growth in Malaysia. The causality only runs in a uni-direction from social capital to the green economic growth. The findings have important policy implications for green economic growth measurement to account for social well-being and to fulfill the objectives of Islamic Sharia.