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Evaluating the impact of zakat by indicator of disaggregated Human Development Index: an empirical finding

In: Handbook of Empirical Research on Islam and Economic Life

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  • Mohammad Soleh Nurzaman

Abstract

Previous research on zakat has shown findings that suggest a positive relation of zakat on the welfare of mustahiq. However, it can be deduced that there is no specific research about the relationship of zakat and an integrated welfare indicator such as a human development index. This chapter looks to contribute to this research area by examining survey data from the beneficiaries of productive-based zakat and non-zakat that have received funding from zakat institutions in the region of the capital city of Indonesia, Jakarta, and secondary data primarily from the World Health Organization and Badan Pusat Statistik (Indonesia Statistical Office). A regression analysis is performed to see whether productive-based zakat has an effect on the Human Development Index (HDI) and its components. This data analysis method shows that HDI can be disaggregated into household level, which can further be utilized to evaluate welfare across the household level of mustahiq and can be expanded so that it is not restricted to only mustahiqs as the object of measurement.

Suggested Citation

  • Mohammad Soleh Nurzaman, 2017. "Evaluating the impact of zakat by indicator of disaggregated Human Development Index: an empirical finding," Chapters, in: M. Kabir Hassan (ed.), Handbook of Empirical Research on Islam and Economic Life, chapter 4, pages 93-108, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:16049_4
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    Keywords

    Asian Studies; Economics and Finance;

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