Main Article Content
This research aims to study the relationship between the Islamic financial institutions’ amount of financing in the three southern border provinces (the Islamic Bank of Thailand, the Islamic Bank Fund of the Bank for Agriculture and Agricultural Cooperatives, and the Ibnu Affan Islamic Cooperative), economic growth, and its impact on poverty during 2006 to 2014. By analyzing secondary data via econometric techniques including the Granger Causality Test and the Panel Least Squares, and an in-depth interview of the institution’s management, results show that economic growth in the three southern border provinces causes the amount of Islamic financing to grow. We, however, do not find a reverse relationship. Despite this result, we do find that Islamic financing has a significant impact in decreasing poverty in the area.
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