Socioeconomic Factors of Demand for Islamic Finance: The Case of Public Sector Employees in Jordan
DOI:
https://doi.org/10.35516/jjes.v12i2.3283Keywords:
Islamic Finance, logistic regression, Odds ratio, JordanAbstract
Objectives: This study investigates the socioeconomic factors that influencing the demand of public sector employees for Islamic finance in Jordan, in light of the noticeable increase in this demand.
Methods: The study adopted the Binary logistic regression model that is used in the analysis of qualitative data. The study tool used to collect data was electronic questionnaire.
Results: Several variables have been studied that were expected to affect the demand for Islamic Finance as independent variables. However, the findings of econometrics analysis revealed that the Education level has a significant and positive impact on the presence of Islamic Finance with odds ratio 7.7 times, as it comes in the first place. Then the second place comes to residence place in terms of importance in the positive impact on the on the presence of Islamic Finance with odds ratio 4.9 times, while the Job category and income comes in the third place in importance and with a positive effect and odds ratio 3.8 times, and in the fourth place comes the positive investment and sustainable growth with a positive effect and odds ratio 2.5 times. In addition to the smoothly credit facilities from financing institutes, which is ranked fifth in the positive impact.
Conclusions: The study concluded that the individual's educational level, place of residence, work sector, income, belief that Islamic finance encourages positive investment and sustainable development in the country, and the easy facilitation provided by financing entities were the most prominent factors influencing the demand for Islamic finance.
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