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Zakat distribution, education, and real income per capita in Malaysia

Yusoff, Mohammed (2014) Zakat distribution, education, and real income per capita in Malaysia. Review of Strategic and International Studies, VI (3). pp. 43-47. ISSN 2326-8085

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Abstract

This paper is multidisciplinary in nature concerning with social, economic, and religious variables. The main objective is to determine the impact of zakat distribution and education levels on real income per capita using panel data of the fourteen states of Malaysia. The results of the estimated fixed effect model are quite satisfactory in terms of correct signs, significant of variables and goodness of fit. All the independent variables are significant at 1% level supporting the hypothesis that zakat expenditure or distribution, primary and secondary school education are important determinants of real income per capita in Malaysia. The results also indicate that secondary school enrolment has the highest impact on real income per capita, followed by primary school enrolment, and zakat spending. As policy implications, it is suggested that Muslim nations must improve the efficiency of zakat collection and spend it prudently as laid out in the al-Qur’an and Hadith. Policymakers should also make serious effort to construct better strategies, planning, and effective policy actions to provide conducive environment and infrastructure for the development in education to increase the stock of human capital in accordance to the need of the nations. These should help increase the real income per capita and improve the standard of living of Muslim community.

Item Type: Article (Journal)
Additional Information: 4178/39546
Uncontrolled Keywords: Zakat distribution, Education, Real Income Per Capita, Panel Data, Malaysia
Subjects: H Social Sciences > HJ Public Finance > HJ2005 Income and expenditure. The budget
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Professor Mohammed Yusoff
Date Deposited: 09 Dec 2014 00:25
Last Modified: 03 Jul 2015 00:37
URI: http://irep.iium.edu.my/id/eprint/39546

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