Jallow, Mamadou Salieu
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The Impact of Distributed Zakat on Sustainable Economic Development in Indonesia: A VECM Approach Hamadou, issa; Jallow, Mamadou Salieu
Jurnal Ekonomi Syariah, Akuntansi dan Perbankan (JESKaPe) Vol. 8 No. 1 (2024): Jurnal Ekonomi Syariah, Akuntansi dan Perbankan (JESKaPe)
Publisher : Institut Agama Islam Negeri Lhokseumawe

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52490/jeskape.v8i1.2810

Abstract

This paper aims to look at the effect of distributed zakat on sustainable economic development variables in Indonesia. Particularly economic growth, human development index (HDI), and poverty rate. A vector error correction model (VECM) was used with time series data from 2001–2020. Furthermore, Unit root test and co-integration test have been also applied for testing the stationarity and long run relationship respectively. It was assumed in the study that there is an affirmative impact of distributed zakat on sustainable economic development in short and long run. Consequently, the primary objectives of zakat distribution related to sustainable zakat funds and economic growth will be successfully achieved. One of the limitations of this research is the case study of one country, Indonesia, so it is suggested to include more countries in further studies in order to generalize the results. Indonesian government should implement tax reduction policies for zakat institutions to assist them in optimizing collection and distribution schemes. In addition, zakat institutions are also recommended to expand their distribution to reach people that are more vulnerable so that it could have a crucial impact on poverty alleviation and enhance sustainable development. There is no sufficient empirical results related to zakat and SDGs. However, the present paper is original and assessed the dynamic short-run and long run effect of distributed zakat on the Human Development Index (HDI), poverty rate and economic growth in Indonesia.
Do Macroeconomic Factors Influence Household Consumption Expenditure in the Gambia? ARDL-Error Correction Regression Approach Jallow, Mamadou Salieu; Hamadou, Issa
The Eastasouth Journal of Social Science and Humanities Vol. 1 No. 03 (2024): The Eastasouth Journal of Social Science and Humanities (ESSSH)
Publisher : Eastasouth Institute

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58812/esssh.v1i03.254

Abstract

Consumption constitutes a larger part of GDP and contributes immensely in enhancing economic growth and development of a country. This study examines the influence of macroeconomic factors on household consumption expenditure in the Gambia. To achieve our objective, we employ ARDL estimation method with Bounds tests to analyze our study using secondary times series data collected from World Bank’s World Development Indicators database from 2000 to 2020. The findings reveal that GDP, inflation, direct credit to private sector, remittances and population all have significant effect on household consumption expenditure in the short run because their p values are less than 0.05 at 5% level of significance. For the long run effect, the CointEq (-1)* is negative and statistically significant. It means that the short run is adjusted with high speed in the run approximatively 108%. Therefore, GDP, inflation, direct credit to private sector, inflation, remittances and population are all significantly affecting household consumption in the long run. Thus, the study recommends that Government of the Gambia to use a mix macroeconomic policy method to stimulate and increase household consumption expenditure in order to help in achieving economic growth and development. The study further recommends future researchers to include other macroeconomic variables like unemployment and interest rate.