Open AccessZAKAT AND ECONOMIC DEVELOPMENT: STUDY IN THREE MUSLIM COUNTRIES IN SOUTHEAST ASIA
Author(s) -
An’im Kafabih,
Setyo Tri Wahyudi
Publication year - 2021
Publication title -
quantitative economics journal
Language(s) - English
Resource type - Journals
eISSN - 2089-7995
pISSN - 2089-7847
DOI - 10.24114/qej.v9i1.23588
Subject(s) - panel data , per capita , foreign direct investment , per capita income , southeast asia , economics , population , investment (military) , government (linguistics) , government spending , economic growth , development economics , business , econometrics , political science , macroeconomics , demography , market economy , history , ancient history , linguistics , philosophy , sociology , politics , welfare , law
The objective of this study is to analyze the effect of zakat on per capita income as one indicator of economic development. The data is analyzed by Cobb-Douglas production function and panel data analysis model. Study findings show that zakat significantly and positively affect on per capita income. This study also found that compared to Foreign Direct Investment (FDI), most popular instrument of government to increase economic development, zakat has a greater coefficient. In addition, Muslims as a majority population on average unable to contribute significantly to economic development. However, they could contribute to zakat as seen from increase in amount of zakat collection.