Journal Middle East and Islamic Studies
Vol. 12, No. 1

Harnessing Zakat to Drive Inclusive Economic Growth: Prospects and Challenges

Fajri, Moh Najikhul (Unknown)
Kusumawardhani, Andini (Unknown)

Article Info

Publish Date
01 Jul 2025

Abstract

This study aims to analyze the role of zakat in promoting local inclusive economic growth in Indonesia. This research uses secondary panel data of 34 provinces during 2017-2022. The analysis techniques used in this study include the Poverty Equivalent Growth Rate (PEGR) inclusive economic growth measurement method and the Static Panel Regression Fixed Effect Model. This study concludes that zakat is proven to be an effective instrument in promoting inclusive economic growth in Indonesia, with a significant impact on income distribution even though its potential is still not optimized. Unique findings reveal that inclusive growth recovered faster than GDP post-pandemic, and Eastern Indonesia region showed better progress than Java as the economic center, indicating the existence of growth-versus-equity paradox.

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Journal Info
Journal Middle East and Islamic Studies
Website

Abbrev

publication:meis

Publisher

Universitas Indonesia

Subject

Arts Economics, Econometrics & Finance Languange, Linguistic, Communication & Media Physics Other

Description

Jurnal of Middle East and Islamic Studies (MEIS) (ISSN 2242-6946 and E-ISSN 2685-239X) is a peer-reviewed journal published biannually (January-June and July-December) by the University of Indonesia and managed by the Middle East and Islamic Studies Program, School of Strategic and Global Studies, ...