Zakat and SDGs: Impact Zakat on Human Development in the Five States of Malaysia

Eko Suprayitno · Mohamed Aslam

61 citations0/0 files storedInternational Journal of Zakat

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Islamic Finance and Banking Studies Economic Growth and Fiscal Policies Religion, Society, and Development

Abstract

Zakat is intended to stimulate economic development, education, social, human resources empowerment, religion health, and insurance programs. The seven programs above are implemented by the Malaysian government to improve economic growth. The aim of the study is to examine the impact zakat on human development program in Malaysia using the Autoregressive Distributed Lag (ARDL) bound testing approach. The analysis was carried out for the period from 1980–2009. The finding of the research reveals that zakat has a positive and significant influence on human development in five state in the short and long run. Zakat in Malaysia can be used as tool of fiscal policy that is decided in the states of Malaysia to stimulate human development and economic growth in the long run. Keyword: Zakat, Human Development, Granger causality test

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References

1969Investigating Causal Relations by Econometric Models and Cross-spectral Methods 1988Testing for a Unit Root in Time Series Regression 1981Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root 2012Learning from television in young children 1992The Foundations of Islamic Political Economy

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