I wonder if there is any econometric estimation/ studies which attempt to assess the Impact of Zakat on economic growth in any countries?
Dr. Fares masdoure c'est un expert économiste algérien contacte le.
To my knowledge the answer no. I think this is a good subject to be investigated.
Dear Rafiq
There are few researches may help you in conducting your project. Please see the following:
Zakat as a Benchmark to Evaluate Economic Growth: An Alternative Approach by Adel M. Sarea
http://tinyurl.com/y25u6bkn
http://tinyurl.com/y6mydt2o
http://tinyurl.com/yxc5xeek
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.
The Influence of Zakat on Economic Growth and Welfare Society in Indonesia
Elleriz Aisha Khasandy, Rudy Badrudin
Zakkat ensures the gap between the have and the have-not in an economy is to an extent reduced
https://www.dailysabah.com/columns/hatem-bazian/2018/04/28/zakat-trickle-up-economics
My scientific understanding supports the positive stimuli of Zakat on economic growth; country and community specific effects (on best practice) have still to be studied empirically.
Net assets method and/or net invested funds method as per computation.
Its interesting to see how a person like Bill Gates clearly suggests that simple "income tax" is not enough to ensure equality, but rather a tax on stored wealth is a better idea (the same idea of Zakat).
See his interview here. Part on taxing wealth starts around 2:30
https://www.youtube.com/watch?v=qG3eNG2rO7o
@ Rafiq Idris
Please take a look at the following references.
Article Zakat as a Benchmark to Evaluate Economic Growth: An Alterna...
Article Investigation on zakat as an indicator for Moslem countries'...
Article Zakat as a Poverty Reduction Mechanism Among the Muslim Comm...
Article The Impact of Zakat Fund in Reducing Poverty Case of Algeria
Article The Impact of Zakat on Aggregate Consumption in Malaysia
Thanks!
I think that zakat increases money, develops it and disinfects it, and makes the distribution of money between the poor and the rich just and thus increases the movement of money and its cycle .
According to me, Zakat improves, develops and promotes the economic growth.
With best regards.
Since Zakat is a compulsory gift from wealth or excessive income (once a year) to poor people (as opposed to sadaka who is voluntary) by increasing their basket as a consumer, increasing their well-being by influencing their productivity growth in society and in a longer period of time reflects also on economic growth.
All the best!
Dear Rafiq Please see for example these two applied works:
The Impact of Zakat on Aggregate Consumption in Malaysia
Zakat expenditure and economic growth in the federal territory of Malaysia
If you have data available for the two mentioned variables for any country, you can built a proper model and estimate it using econometric techniques.
Wish you the best,
well, u can make a modele , making ZAKAT as private spending or a part of government spending (if your government gather all the zakat and spend it).
If zakat is well collected,and spent in a normal way.either from private or government. It can boost economy and brings about economic growth. And also in the long run, it will enhance economic development.
That needs to be measured where Zakat is collected. For now, Zakat has indirect effect on growth that is not officially identified in many places, countries etc.
Dr. Najeeb Zada from INCEIF has written about Zakat Re-Investment Trusts and its impacts. You can google him. His work is available on Springer too. Moreover, the Malaysians have written plenty on Zakat and its impacts. Likewise, some studies are available on Durham Online Thesis Repository.
Here an example of studies regarding your concern:
Daly, S., & Frikha, M. (2015). Islamic finance, a support to development and economi c growth: the principle of Zakat as an Example. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport, 3(1).
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