COGNITIVE MODEL OF COMPARATIVE ANALYSIS OF THE INFLUENCE OF VARIOUS FINANCIAL SYSTEMS ON ECONOMIC GROWTH RATES
Abstract
The architecture of the financial system of the country as a system of “blood vessels” of the state, of course, affects the rate of economic growth. In connection with the development of the Islamic model of finance in the last half century, also called the partner model of finance, a discussion has arisen about which of the two models, Islamic or traditional, have the most favorable effect on economic growth rates.
These two models are distinguished by several basic principles and, accordingly, financing mechanisms, among which the basic is the prohibition of interest on capital, which is basic in conventional banking practice. Instead, the source of income of an Islamic bank is the share in future profits that a bank customer expects to receive as a result of a business financed by a financial institution.
In the discussion on the comparative advantages and disadvantages of banking systems, several questions stand out: which of the two systems provides the country's economy with faster economic growth, which - the development of new technologies, and which - conserves the old ones, how these two systems affect the development of small businesses, the recovery of economic relationships, and other issues. Most often, the question is raised about the impact on the rate of development of a country's GDP, and this question is examined by a comparative analysis of different countries in which both systems are represented in different proportions.
The main method of such research is, of course, the econometric method. This paper develops an agent-based approach to the study of this issue. The essence of the agent-based method is the creation and study of mathematical, computer-implemented models in which each economic agent (bank, client) is represented as a virtual agent in a software environment, having the functions of real participants of financial relations. This paper describes such a model developed in NetLogo. The use of such models is an effective cognitive tool in the study of economic phenomena.
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