Tag: I25

DOES ZAKAT MATTER FOR HUMAN DEVELOPMENT? AN EMPIRICAL EVIDENCE FROM INDONESIA

I.K. Balyanda AKMAL

Postgraduate Student in Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

balyanda@gmail.com

M. Shabri Abd. MAJID

Senior Lecturer, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

Corresponding author

mshabri@unsyiah.ac.id

Eddy GUNAWAN

Senior Lecturer, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

egunawan@unsyiah.ac.id

Abstract

This study aims to empirically measure and analyze the contribution zakat to human development and, consequently towards the achievement of the Sustainability Development Goals (SDGs) program in Indonesia. Specifically, this study intends to measure the differences in the Human Development Index (HDI) of zakat recipients before and after receiving zakat and measure the effect of zakat on the HDI and its components. The response to these issues, the study estimates the value of the Human Development Index (HDI) at a minor level; the individual and household levels. 100 recipients of zakat (mustahik) from the three programs of zakat distribution by the zakat institution of Aceh Province, Indonesia (Baitul Mal Aceh – BMA) were selected as the sample of the study using a combination of purposive and proportionate stratified random samplings. These zakat programs include zakat for cancer and thalassemia patients, zakat for one family one undergraduate scholarship, and zakat for buying working capital for the poor families. The paired t-test is adopted to assess the differences in HDI of zakat recipients before and after receiving zakat, while the multiple linear regression is used to measure the effect of zakat on the HDI and its components. The study found that, after receiving zakat, the HDI of zakat recipients is higher than before. Zakat is also recorded to have a significant positive effect on the HDI, while the family size affected negatively the HDI and the types of zakat and profession of zakat recipients have an insignificant effect on the HDI. These findings suggest the positive role of zakat in improving human development and it could be used as one of the instruments to accelerate the achievement of the SDGs agenda in Indonesia.

Keywords: Education, Health, Human Development, Welfare, Zakat

JEL classification: D64, O15, Q01, I15, I25, I38

read more

REGIONAL STRATEGIES FOR DEALING WITH STRUCTURAL CHANGE

Eleonora CUTRINI

Associate Professor, Department of Law, University of Macerata

eleonora.cutrini@unimc.it

Enzo VALENTINI

Research Fellow,Department of Political Sciences, Communication and International Relations, University of Macerata

enzo.valentini@unimc.it

Abstract

In recent decades, the low economic performance of European countries has been mainly responsible for the emergence of an economic policy increasingly intended to strengthen the innovative and technology capacity of regions. In particular, the European periphery is lagging behind in the transition to a knowledge driven and eventually service-oriented economy. In a general context of de-industrialization and transition to service economy, and bearing in mind the policy debate at the EU level, the aim of this paper is to analyze the factors driving knowledge-intensive service specialization at the regional level in Italy. Our main research questions here can be summarized as follows: What determines the transition to Services and the specialization in Knowledge-Intensive Services (KIS) in Italy? What are the structural characteristics that may explain the regional variation of employment share in high-knowledge services? Using data on Italian regions over the period 1995-2014 (and spatial panel models as a methodology), the analysis carried out in the paper suggests some considerations: the “mere” (but needed) transition to service activities can be positively associated with R&D Personnel, Tertiary Education, University Attractiveness, Tourism and efficient infrastructure (Railroad). But the transition to Knowledge Intensive Services, supposed to pay higher wages, may deserve a more appropriate and focused public intervention, in view of the fact that it seems to be mainly associated with Public R&D, Tertiary Education and University Attractiveness.

Keywords: Structural Change, Specialization, Spatial Panels, Regional Economy

JEL classification: I25, O32, R11, R12

read more