Zakat and Socio-Economic Impact: The Role of Local Government and Zakat Institutions

Authors

  • Umar Al-Haddad Faculty of Sharia and Law, State Islamic University of Syarif Hidayatullah, 15412 Jakarta
  • Agung Maulana Management Department, Faculty of Business and Humanities, Nusa Putra University, 43152 Sukabumi.
  • Rifaldi Majid Islamic Economics Department, Faculty of Economics and Business, Diponegoro University, 50275 Semarang
  • Muh. Fudhail Rahman Faculty of Sharia and Law, State Islamic University of Syarif Hidayatullah, 15412 Jakarta

DOI:

https://doi.org/10.22452/IJIE.vol16no3.2

Keywords:

Economic growth, Impact of zakat, Inequality, Role of government, Zakat institutions

Abstract

Abstract: This study aims to solve research questions on whether support for zakat
institutions (ZIs) from regional governments in the East Java province of Indonesia
affects the social and economic conditions of the region. The authors observed 11 samples
of cities and districts in East Java over the last three years (2019 to 2021). Thirty-three
research data were processed using panel data regression techniques with a fixed-effects
model approach. Data was obtained from the National Zakat Institution (Baznas). The
results show that financial support from the local government budget (RREB) and
through zakat regulations of the regional governments in East Java have a positive
effect on GRDP and a significant negative effect on the Gini index. In addition, zakat
distribution activities in East Java have also been shown to have a significant positive
and negative effect on GRDP growth and the Gini index. This study also provides
recommendations to the local government of East Java and zakat stakeholders in
synergising to build a better regional ZI system to support the regional economy.

Downloads

Download data is not yet available.

Downloads

Published

2024-07-01

How to Cite

Umar Al-Haddad, Agung Maulana, Rifaldi Majid, & Muh. Fudhail Rahman. (2024). Zakat and Socio-Economic Impact: The Role of Local Government and Zakat Institutions. Institutions and Economies, 16(3), 27–50. https://doi.org/10.22452/IJIE.vol16no3.2

Issue

Volume 16, Issue 3 (2024)

Section

Articles

License

Submission of a manuscript implies: that the work described is original, has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); that is not under consideration for publication elsewhere; that its publication has been approved by all co-authors, if any, as well as tacitly or explicitly by the responsible authorities at the institution where the work was carried out. Transfer of copyright to the University of Malaya becomes effective if and when the article is accepted for publication. The copyright covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline and online) or other reproductions of similar nature.
An author may self-archive the English language version of his/her article on his/her own website and his/her institutions repository; however he/she may not use the publishers PDF version which is posted on www.ijie.um.edu.my. Furthermore, the author may only post his/her version, provided acknowledgement is given to the original source of publication and a link must be accompanied by the following text: The original publication is available at www.ijie.um.edu.my.

All articles published in this journal are protected by copyright, which covers the exclusive rights to reproduce and redistribute the article (e.g. as offprint), as well as all translation rights. No material published in this journal may be reproduced photographically or stored on microfilm, in electronic database, video disks, etc., without first obtaining written permission from the publishers. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.

The copyright owners consent does not include copying for general distribution, promotion, new works, or resale. In these cases, specific written permission must first be obtained from the publishers.