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The impact of zakat distribution on social welfare a case study of Selangor zakat agencies, Malaysia

Ashurov, Sharofiddin and Othman, Anwar Hasan Abdullah and Syed Jaafar Alhabshi, Syed Musa (2019) The impact of zakat distribution on social welfare a case study of Selangor zakat agencies, Malaysia. Al-Shajarah: Journal of The International Institute of Islamic Thought and Civilization (ISTAC), Special Issue: Islamic Banking and Finance. pp. 147-167. ISSN 1394-6870

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Abstract

This study empirically examines the effectiveness of yearly zakāt distribution as an instrument for social welfare in the state of Selangor, Malaysia. The study applied the autoregressive distributed lag (ARDL) approach to examine these relationships over the period from 2010 to 2018. Overall, the study found that the zakāt distribution contributes significantly to social welfare through education at a significance level of 5% and contributes inadequately through income level at 10% level of significance. This indicates that the current zakāt distribution system in Selangor provides only a marginal influence on increasing the income of the poor. Furthermore, the zakāt distribution was statistically insignificant to social welfare through healthcare. These findings suggest that the current distribution channels of health are insufficient to improve social welfare and should be improved by offering social health insurance policy for zakāt beneficiaries. This can be done via ratification insurance plan between zakāt agencies and insurance companies to cover the basic health needs for zakāt recipients.

Item Type: Article (Journal)
Additional Information: 8755/75378
Uncontrolled Keywords: Zakāt Distribution, Social Welfare, Income, Health Care, Education
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HB Economic Theory > HB846 Welfare theory
H Social Sciences > HG Finance
H Social Sciences > HG Finance > HG1501 Banking
H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr Sharofiddin Ashurov
Date Deposited: 14 Oct 2019 17:08
Last Modified: 15 Oct 2019 11:27
URI: http://irep.iium.edu.my/id/eprint/75378

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