The Impact of Zakat on the Economy and Poverty in Indonesia
Abstract
This study aims to examine the impact of zakat and various socio-economic factors on regional economic growth and poverty levels in Indonesia. Using panel data from 34 provinces in Indonesia for the period 2019-2021. This study examines the complex relationships between zakat distribution and key macroeconomic indicators within an Islamic economic framework, using a common effects model for the economic growth equation and a fixed effects model for the poverty equation. The results indicate that zakat has a positive significant effect on economic growth and has a negative significant effect on poverty. This research provides valuable insights into the potential role of zakat in addressing economic inequality and promoting sustainable development in Indonesia.
Fields of Study & Subjects
Islamic Finance and Banking Studies
Islamic Studies and Radicalism
Islamic Finance and Communication
Publication details
- Journal / source
- Journal of Islamic Economic Laws
- Publisher
- Universitas Muhammadiyah Surakarta
- Volume
- 9
- Issue
- 01
- Pages
- 19–35
- Publication date
- 26 January 2026