The Role of Zakat, Infaq and Shadaqah in Indonesia’s Economic Growth: An Islamic Perspective

Fajrin Intan Safitri (Faculty of Economics and Business, Brawijaya University, Indonesia)
Ghozali Maski (Faculty of Economics and Business, Brawijaya University, Indonesia)
Iswan Noor (Faculty of Economics and Business, Brawijaya University, Indonesia)
Ardhika Wahyu Kuncoro (Department of Fiqh and Ushul Al-Fiqh, Kulliyah of Islam Revealed Knowledge and Human Science, International Islamic University Malaysia, Malaysia)

Falah : Jurnal Ekonomi Syariah
Vol. 9 No. 1 (2024): FEBRUARY

The nexus between economic growth and national income is very critical driven by the nation’s growth performance and its citizens’ improvement standard of living. This study aims to analyze the role of zakat, infaq and shadaqah in Indonesia’s economic growth from the Islamic perspective. By utilizing secondary data from Bank Indonesia, Central Bureau of Statistics, and BAZNAS this research employs the 2SLS (Two-Stage Least Square) method to estimate structural coefficients. The result found that generaly, zakat, infaq and shadaqah (ZIS) and consumption significantly contributed to economic growth from several variables like net exports, investment, and government during period 2001-2020. This research contribute to highlighting the significant impact of ZIS on national income and societal consumption, this study also provide result of study aimed at enhancing economic growth and ensuring the equitable collection and distribution of ZIS funds.