IDEAS home Printed from https://ideas.repec.org/a/abd/kauiea/v35y2022i1no5p75-97.html
   My bibliography  Save this article

The Moderating Effect of zakāh Distribution on the Economic Well-being of the Poor: An Analysis in Kelantan, Malaysia التأثير المعتدل لتوزيع الزكاة على الرفاهية الاقتصادية للفقراء: تحليل من ولاية كلانتان بماليزيا

Author

Listed:
  • Ahmad Fahme Mohd Ali

    (Senior Lecturer, Faculty of Hospitality, Tourism and Wellness, University Malaysia Kelantan, Malaysia)

  • W.A. Amir Zal

    (Associate Professor, Centre for Language Studies and Generic Development, University Malaysia Kelantan, Malaysia)

  • Nurhanan Ab. Hamid

    (Senior Lecturer, Faculty of Agro Based Industry, University Malaysia Kelantan, Malaysia)

  • Tengku Fauzan Tengku Anuar

    (Senior Lecturer, Faculty of Creative Technology and Heritage, University Malaysia Kelantan, Malaysia)

  • Hafizi Mat Salleh

    (Assistant Professor, Institute for Poverty Research and Management, University Malaysia Kelantan, Malaysia)

  • Siti Asma Md. Rasdi

    (Assistant Professor, Institute for Poverty Research and Management, University Malaysia Kelantan, Malaysia)

Abstract

The main objective of this paper is to study the moderating effect of zakāh distribution on the family structure and the economic well-being of the poor in the state of Kelantan in Malaysia. The state of Kelantan was selected for the survey because it has the highest incidence of poverty in Peninsular Malaysia. The analysis of this study is based on Variance Based Structural Equation Modelling (VB-SEM) technique, while the data mining process, descriptive statistics and demographic data of this study were conducted using SPSS software. This study revealed that zakāh assistance and family structure dimensions positively and significantly affect economic well-being. The result also indicates that the direct effect of age, marital status, and gender is not significant due to the insufficient economic well-being that does not meet their basic needs. The mediating role of zakāh indicates that age, marital status, and gender have both significant indirect effect and insignificant direct effect on economic well-being, which means that the indirect effect of family structure on economic well-being is fully mediated by zakāh. هَدَفت الورقة إلى دراسة التأثير الوسيط لتوزيع الزكاة على بُنية الأسرة والرفاهية الاقتصادية للفقراء في ولاية كلانتان بماليزيا. تم اختيار ولاية كلانتان للمسح نظرًا لوجود أعلى معدلات للفقر فيها أكثر من ولايات ماليزيا الأخرى. اعتمد تحليل الدراسة على تقنية نمذجة المعادلات الهيكلية القائمة على التباين (VB-SEM)، بينما أجريت عملية استخراج البيانات والإحصاءات الوصفية، والبيانات الديموغرافية لهذه الدراسة باستخدام برنامج (SPSS). أَظْهرت نتائج الدراسة أن أبعاد المساعدة الزكوية، وهيكل الأسرة تؤثران تأثيرًا إيجابيًا ومعنويًا على الرفاهية الاقتصادية للأسر الفقيرة. كما تُشير النتائج كذلك إلى أن التأثير المباشر للعمر، والحالة الاجتماعية، والجنس ليس مهمًا بسبب عدم كفاية الرفاه الاقتصادي الذي لا يلبي احتياجاتهم الأساسية. في حين يُشير الدور الوسيط للزكاة إلى أن العمر والحالة الاجتماعية، والجنس لهما تأثير غير مباشر ومهم، وتأثير مباشر غير مهم على الرفاهية الاقتصادية، مما يعني أن التأثير غير المباشر لبنية الأسرة على الرفاه الاقتصادي تقوم الزكاة بتغطيته بالكامل.

Suggested Citation

  • Ahmad Fahme Mohd Ali & W.A. Amir Zal & Nurhanan Ab. Hamid & Tengku Fauzan Tengku Anuar & Hafizi Mat Salleh & Siti Asma Md. Rasdi, 2022. "The Moderating Effect of zakāh Distribution on the Economic Well-being of the Poor: An Analysis in Kelantan, Malaysia التأثير المعتدل لتوزيع الزكاة على الرفاهية الاقتصادية للفقراء: تحليل من ولاية كلان," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 35(1), pages 75-97, January.
    • Handle: RePEc:abd:kauiea:v:35:y:2022:i:1:no:5:p:75-97
    DOI: 10.4197/Islec.35-1.5
    as

    Download full text from publisher

    File URL: https://iei.kau.edu.sa/Files/121/Files/153818_35-01-05-AhmadF-010122.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.4197/Islec.35-1.5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Medeiros, Marcelo & Costa, Joana, 2008. "Is There a Feminization of Poverty in Latin America?," World Development, Elsevier, vol. 36(1), pages 115-127, January.
    2. Bigsten , Arne & Levin, Jörgen, 2000. "Growth, Income Distribution, and Poverty: A Review," Working Papers in Economics 32, University of Gothenburg, Department of Economics.
    3. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, Jose M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 9 - Distribution and Dynamics," OPHI Working Papers ophiwp090_ch9.pdf, Queen Elizabeth House, University of Oxford.
    4. Sabina Alkire & James E. Foster & Suman Seth & Maria Emma Santos & Jose M. Roche & Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 9 - Distribution and Dynamics," OPHI Working Papers 90, Queen Elizabeth House, University of Oxford.
    5. K. Bauman, "undated". "Shifting Family Definitions: The Effect of Cohabitation and Other Nonfamily Household Relationships on Measures of Poverty," Institute for Research on Poverty Discussion Papers 1123-97, University of Wisconsin Institute for Research on Poverty.
    6. Louis Guttman & Shlomit Levy, 1982. "On the definition and varieties of attitude and wellbeing," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 10(2), pages 159-174, February.
    7. Lee, Craig & Hallak, Rob, 2018. "Investigating the moderating role of education on a structural model of restaurant performance using multi-group PLS-SEM analysis," Journal of Business Research, Elsevier, vol. 88(C), pages 298-305.
    8. Melissa Hidrobo & Amber Peterman & Lori Heise, 2016. "The Effect of Cash, Vouchers, and Food Transfers on Intimate Partner Violence: Evidence from a Randomized Experiment in Northern Ecuador," American Economic Journal: Applied Economics, American Economic Association, vol. 8(3), pages 284-303, July.
    9. Elizabeth O. Ananat & Guy Michaels, 2008. "The Effect of Marital Breakup on the Income Distribution of Women with Children," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 611-629.
    10. Hazel Jean L. Malapit & Suneetha Kadiyala & Agnes R. Quisumbing & Kenda Cunningham & Parul Tyagi, 2015. "Women's Empowerment Mitigates the Negative Effects of Low Production Diversity on Maternal and Child Nutrition in Nepal," Journal of Development Studies, Taylor & Francis Journals, vol. 51(8), pages 1097-1123, August.
    11. Sabina Alkire & James E. Foster & Suman Seth & Maria Emma Santos & Jose M. Roche & Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 7 - Data and Analysis," OPHI Working Papers 88, Queen Elizabeth House, University of Oxford.
    12. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, vol. 105(433), pages 1415-1434, November.
    13. Taylor, Mark P. & Jenkins, Stephen P. & Sacker, Amanda, 2011. "Financial capability and psychological health," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 710-723.
    14. Brigitte Buhmann & Lee Rainwater & Guenther Schmaus & Timothy M. Smeeding, 1988. "Equivalence Scales, Well‐Being, Inequality, And Poverty: Sensitivity Estimates Across Ten Countries Using The Luxembourg Income Study (Lis) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    15. Mentzakis, Emmanouil & Moro, Mirko, 2009. "The poor, the rich and the happy: Exploring the link between income and subjective well-being," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 147-158, January.
    16. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, José M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 2 - The Framework," OPHI Working Papers ophiwp083_ch2.pdf, Queen Elizabeth House, University of Oxford.
    17. Sabina Alkire & James E. Foster & Suman Seth & Maria Emma Santos & Jose M. Roche & Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 2 - The Framework," OPHI Working Papers 83, Queen Elizabeth House, University of Oxford.
    18. Ogbeibu, Samuel & Senadjki, Abdelhak & Gaskin, James, 2018. "The moderating effect of benevolence on the impact of organisational culture on employee creativity," Journal of Business Research, Elsevier, vol. 90(C), pages 334-346.
    19. Jörg Henseler & Marko Sarstedt, 2013. "Goodness-of-fit indices for partial least squares path modeling," Computational Statistics, Springer, vol. 28(2), pages 565-580, April.
    20. Pahl, Jan, 1995. "His money, her money: Recent research on financial organisation in marriage," Journal of Economic Psychology, Elsevier, vol. 16(3), pages 361-376, September.
    21. Linda Waite, 1995. "Does marriage matter?," Demography, Springer;Population Association of America (PAA), vol. 32(4), pages 483-507, November.
    22. Belkacem Laabas and Imed Limam, "undated". "Impact of public policies on poverty, income distribution and growth," API-Working Paper Series 0401, Arab Planning Institute - Kuwait, Information Center.
    23. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    24. Meenakshi, J. V. & Ray, Ranjan, 2002. "Impact of household size and family composition on poverty in rural India," Journal of Policy Modeling, Elsevier, vol. 24(6), pages 539-559, October.
    25. Timothy Smeeding & Gunther Schmaus & Brigitte Buhmann & Lee Rainwater, 1988. "Equivalence Scales, Well-Being, Inequality and Poverty: Sensitivity Estimates Across Ten Countries Using the LIS Database," LIS Working papers 17, LIS Cross-National Data Center in Luxembourg.
    26. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-1082, September.
    27. Akira Ishida & Siong-Hook Law & Yoshihisa Aita, 2003. "Changes in food consumption expenditure in Malaysia," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 61-76.
    28. Dreze, Jean & Srinivasan, P. V., 1997. "Widowhood and poverty in rural India: Some inferences from household survey data," Journal of Development Economics, Elsevier, vol. 54(2), pages 217-234, December.
    29. Charlotte Bilo & Anna Carolina Machado, 2018. "The role of zakat in the provision of social protection: a comparison between Jordan, Palestine and Sudan," One Pager Arabic 381, International Policy Centre for Inclusive Growth.
    30. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, José M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 7 - Data and Analysis," OPHI Working Papers ophiwp088_ch7.pdf, Queen Elizabeth House, University of Oxford.
    31. Audrey Light, 2004. "Gender differences in the marriage and cohabitation income premium," Demography, Springer;Population Association of America (PAA), vol. 41(2), pages 263-284, May.
    32. Maximilian Kasy & Alvaro Ramos-Chaves, 2014. "The Impact of Changing Family Structures on the Income Distribution among Costa Rican Women 1993-2009," Feminist Economics, Taylor & Francis Journals, vol. 20(2), pages 122-144, April.
    33. Alkire, Sabina & Foster, James & Seth, Suman & Santos, Maria Emma & Roche, Jose Manuel & Ballon, Paola, 2015. "Multidimensional Poverty Measurement and Analysis," OUP Catalogue, Oxford University Press, number 9780199689491.
    34. Bruce D. Meyer & James X. Sullivan, 2003. "Measuring the Well-Being of the Poor Using Income and Consumption," NBER Working Papers 9760, National Bureau of Economic Research, Inc.
    35. Wenqiang Sun & Dongping Li & Wei Zhang & Zhenzhou Bao & Yanhui Wang, 2015. "Family Material Hardship and Chinese Adolescents’ Problem Behaviors: A Moderated Mediation Analysis," PLOS ONE, Public Library of Science, vol. 10(5), pages 1-22, May.
    36. Lancaster, Geoffrey & Ray, Ranjan & Valenzuela, Maria Rebecca, 1999. "A Cross-Country Study of Household Poverty and Inequality on Unit Record Household Budget Data," Economic Development and Cultural Change, University of Chicago Press, vol. 48(1), pages 177-208, October.
    37. Christian A. Emini & Hippolyte Fofack, 2004. "A financial social accounting matrix for the integrated macroeconomic model for poverty analysis : application to Cameroon with a fixed-price multiplier analysis," Policy Research Working Paper Series 3219, The World Bank.
    38. Anna Carolina Machado & Charlotte Bilo & Imane Helmy, 2018. "The role of zakat in the provision of social protection: a comparison between Jordan, Palestine and Sudan," Working Papers 168, International Policy Centre for Inclusive Growth.
    39. repec:bla:revinw:v:34:y:1988:i:2:p:115-42 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jing Yang & Pundarik Mukhopadhaya, 2019. "Is the ADB’s Conjecture on Upward Trend in Poverty for China Right? An Analysis of Income and Multidimensional Poverty in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(2), pages 451-477, June.
    2. Megbowon Ebenezer Toyin, 2018. "Multidimensional Poverty Analysis of Urban and Rural Households in South Africa," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 63(1), pages 3-19, April.
    3. Nick Bailey & Anne-Catherine Guio, 2022. "Adaptive Deprivation Scales in a Multi-National Context: The European Child Deprivation Indicators," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 15(6), pages 2335-2362, December.
    4. Erlangga Agustino Landiyanto, 2022. "Comparison of Child Poverty Measures: Looking for Consensus," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 15(1), pages 35-66, February.
    5. Mónica Pinilla‐Roncancio & Jeannette Liliana Amaya‐Lara & Gustavo Cedeño‐Ocampo & Paul Rodríguez‐Lesmes & Carlos Sepúlveda, 2023. "Catastrophic health‐care payments and multidimensional poverty: Are they related?," Health Economics, John Wiley & Sons, Ltd., vol. 32(8), pages 1689-1709, August.
    6. Weiyu Yu & Nicola A Wardrop & Robert E S Bain & Victor Alegana & Laura J Graham & Jim A Wright, 2019. "Mapping access to domestic water supplies from incomplete data in developing countries: An illustrative assessment for Kenya," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-19, May.
    7. Jhonatan Clausen & Nicolas Barrantes, 2022. "Developing a Comprehensive Multidimensional Wellbeing Index Based on What People Value: An Application to a Middle-Income Country," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(6), pages 3253-3283, December.
    8. Nicolai Suppa, 2021. "Walls of glass. Measuring deprivation in social participation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(2), pages 385-411, June.
    9. Abre-Rehmat Qurat-ul-Ann & Faisal Mehmood Mirza, 2021. "Multidimensional Energy Poverty in Pakistan: Empirical Evidence from Household Level Micro Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 211-258, May.
    10. Londari Yamarak & Kevin A. Parton, 2023. "Impacts of mining projects in Papua New Guinea on livelihoods and poverty in indigenous mining communities," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 13-27, January.
    11. Mora-Rivera, Jorge & García-Mora, Fernando, 2021. "Internet access and poverty reduction: Evidence from rural and urban Mexico," Telecommunications Policy, Elsevier, vol. 45(2).
    12. Fan Yang & Krishna P. Paudel, 2023. "Nutrition, multidimensional poverty and income: The case of Nepal," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1962-1984, October.
    13. Alkire, Sabina & Oldiges, Christian & Kanagaratnam, Usha, 2021. "Examining multidimensional poverty reduction in India 2005/6–2015/16: Insights and oversights of the headcount ratio," World Development, Elsevier, vol. 142(C).
    14. Admasu,Yeshwas & Alkire,Sabina & Ekhator-Mobayode,Uche Eseosa & Kovesdi,Fanni & Santamaria,Julieth & Scharlin-Pettee[,Sophie, 2021. "A Multi-Country Analysis of Multidimensional Poverty in Contexts of Forced Displacement," Policy Research Working Paper Series 9826, The World Bank.
    15. Jing Su & Liwei Tang & Pan Xiao & Ermei Wang, 2023. "Multidimensional poverty vulnerability in rural China," Empirical Economics, Springer, vol. 64(2), pages 897-930, February.
    16. Mónica Pinilla-Roncancio & Sandra García-Jaramillo & Ana Lorena Carrero & Catalina González-Uribe & Amy Ritterbusch, 2020. "Child vs. Household MPIs in Colombia: Do they Identify the Same Children as Multidimensionally Poor?," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 13(3), pages 777-799, June.
    17. Pinaki Das & Bibek Paria & Shama Firdaush, 2021. "Juxtaposing Consumption Poverty and Multidimensional Poverty: A Study in Indian Context," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 469-501, January.
    18. Tavares, Fernando Flores & Betti, Gianni, 2021. "The pandemic of poverty, vulnerability, and COVID-19: Evidence from a fuzzy multidimensional analysis of deprivations in Brazil," World Development, Elsevier, vol. 139(C).
    19. Zaira Najam & John Gibson, 2022. "Does intra‐country poverty convergence depend on spatial spillovers and the type of poverty measure? Evidence from Pakistan," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 9(3), pages 516-535, September.
    20. Lidia Ceriani & Sergio Olivieri & Marco Ranzani, 2023. "Housing, imputed rent, and household welfare," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(1), pages 131-168, March.

    More about this item

    Keywords

    Structure Equation Model (SEM); Poor and Needy; zakāh Distribution; Poverty; Kelantan; Malaysia. نموذج المعادلة الهيكلية (SEM)، الفقير والمسكين، توزيع الزكاة، الفقر، كلانتان، ماليزيا.;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abd:kauiea:v:35:y:2022:i:1:no:5:p:75-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: King Abdulaziz University, Islamic Economics Institute. (email available below). General contact details of provider: https://edirc.repec.org/data/cikausa.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.