Proceedings of Annual International Conference Syiah Kuala University - Social Sciences Chapter
Vol 10 (2020): the 10th AIC on Social Sciences, Syiah Kuala University

Study of the Effect of Zakat on Reducing Poverty in Districts/Cities in Aceh Province 2011-2018

Nilam Sari (Department of Economics Shariah, Faculty of Islamic Economics and Business, University of Ar-raniry, Banda Aceh 23111, Indonesia)
Winny Dian Safitri (Department of Economics Shariah, Faculty of Islamic Economics and Business, University of Ar-raniry Survey and Policy Analysis Research Group (SPARG), Syiah Kuala University)
Rizki Maulana (Survey and Policy Analysis Research Group (SPARG), Syiah Kuala University)
Jumila Jumila (Departement of Computer Science, Faculty of Matematics, Natural Sciences, Economics and Computer Science, University of Hildesheim, Hildesheim 31141, Germany)
Elda Elnovita (Badan Pusat Statistik Aceh Jaya, Krueng Sabee 23654, Indonesia)



Article Info

Publish Date
10 Feb 2021

Abstract

Poverty is a condition in which someone is unable to fulfill his primary needs. Poverty is caused by low human resources, lack of access to capital, and low levels of productivity of goods and services. One indicator of reducing the poverty rate can be done by optimizing zakat funds. The purpose of this study is to determine whether the existence of zakat funds can reduce poverty. This is quantitative research that used secondary data, and the data was analyzed by using the panel data regression technique. The results showed that zakat has a significant negative effect on the poverty rate. The result implies that zakat can be used as an instrument of fiscal policy by district/city governments in combating poverty rate.

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