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Zakat and Economic Development: Micro and Macro Level Evidence from Pakistan

Author

Listed:
  • Muhammad Azam

    (Ph. D Scholar, Federal Urdu University, Islamabad, Pakistan)

  • Nasir Iqbal

    (Staff Economist, Pakistan Institute of Development Economics, Islamabad, Pakistan)

  • Muhammad Tayyab

    (Research Scholar, AJK University, Muzaffarabad, Pakistan)

Abstract

Zakat, as a transfer payment, is an important instrument to achieve social welfare ina society in Islamic ideology. This study attempts to analyze the impact of Zakat on economic development using micro and macro level data for Pakistan. The overall analysis shows that Zakat has a positive impact on economic development in Pakistan. More specifically, micro evidence shows that Zakat significantly enhances the welfare of the households. Macro evidence also highlights that Zakat significantly contributes to economic growth in Pakistan. These findings have important implications for Pakistan.

Suggested Citation

  • Muhammad Azam & Nasir Iqbal & Muhammad Tayyab, 2014. "Zakat and Economic Development: Micro and Macro Level Evidence from Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 3(2), pages 85-95, June.
    • Handle: RePEc:rfh:bbejor:v:3:y:2014:i:2:p:85-95
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    References listed on IDEAS

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    Cited by:

    1. Neneng Susilowati, 2021. "Effect of macroeconomic indicators against ZIS payments in the National Amil Zakat Agency (BAZNAS) 2013-2017," Technium Social Sciences Journal, Technium Science, vol. 18(1), pages 194-206, April.
    2. Khasandy, Elleriz Aisha & Badrudin, Rudy, 2019. "The Influence of Zakat on Economic Growth and Welfare Society in Indonesia," MPRA Paper 91574, University Library of Munich, Germany.
    3. Alam, Md. Mahmudul & Wahab, Norazlina Abd & Haq, Ashraf Al & Ahmad, Siti Aznor, 2022. "Sustainable Development Status of Zakat Recipients: Empirical Investigation based on Malaysia’s Kedah State," OSF Preprints y4scw, Center for Open Science.
    4. Salman Ahmed Shaikh, 2015. "Welfare Potential of Zakat: An Attempt to Estimate Economy wide Zakat Collection in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 1011-1027.
    5. Muhammad Tariq & Aneesa & Farah Khan, 2019. "The Effects of Social Protection Program on Food Consumption and Poverty in Khyber Pakhtunkhwa, Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 11(1), pages 55-82, March.
    6. Shaikh, salman Ahmed, 2014. "Welfare Potential of Zakat: An Attempt to Estimate Economy wide Zakat Collection in Pakistan," MPRA Paper 68752, University Library of Munich, Germany.

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