ISLAMICITY AND GLOBAL COMPETITIVENESS: A CROSS-NATIONS PATH ANALYSIS

This paper analysis the impact, direct and indirect impacts, of Islamicity on Global competitiveness, with Human development as moderator variable. Cross-section data on Islamicity index, Human development index and Global competitiveness index were collected from 123 countries and employed in a path analysis model. The results show that Islamicity had a positive and significant direct impact on global competitiveness. Islamicity had also positive and significant direct impact on human development. These direct impacts were statistically significant. Furthermore, human development had a positive and significant direct impact on the global competitiveness. Finally, Islamicity had a positive and significant indirect impact on the global competitiveness, through human development. It is suggested that Islamic teaching be implemented in daily life in order to maintain competitiveness globally.