Islamic Trade Financing and Poverty Mitigation: An Econometric Estimation Informing Islamic Development Bank Member Countries Considering Their Entrepreneurial Ecosystems

This paper is an empirical analysis of the effect of entrepreneurial ecosystems on the relationship between Islamic Trade financing (TF) and poverty trends in Islamic Development Bank (IsDB) member countries. The study employs a linear dynamic panel data GMM model to analyze the relationship between Islamic Trade Financing dollar amounts by the IsDB and GNI Per Capita, PPP, measured against Global Entrepreneurship Index (GEI) scores for the years 2009 to 2019. Results show a significant positive relationship between TF dollar amounts and GNI Per capita, with ascending entrepreneurial ecosystems positively affecting this relationship. The study recommends that IsDB member countries formulate policies to facilitate Islamic Trade financing for poverty mitigation while improving their entrepreneurial ecosystems for economic progress.