I am currently working on this paper and want to include a mediating or moderating variable to study the association between islamic banking and economic growth. Please suggest me to carry on my working paper. Thanks
You can use corruption , law and order of Islamic Shariah and institutional quality as moderating variables and saving rate, investment, total factor productivity as mediating variables
But I suggest you that dont go behind causality, especially if you are working on theses, it creates a big problem for you. For example, if you find bidirectional causality or reverse causality, its mean there the endogeneity confirmed. Then you have to solve the endogeneity problem, so you have to use GMM or IVs etc. Personally, I have no good experience of causality. It is better, you just simple check the association or correlation between your interest variable and ind variables.