Tag: O15

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

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HUMAN CAPITAL AND HIGHER EDUCATION AS DRIVERS OF ECONOMY IN ALBANIA

Etleva BAJRAMI

Prof. Assoc. Dr., Pedagogue in Finance Department, Faculty of Economy, University of Tirana

etlevabajrami@feut.edu.al

Brikena LEKA

Prof. Assoc. Dr., Pedagogue in Finance Department, Faculty of Economy, University of Tirana

brikenaleka@feut.edu.al

Abstract

Education is a strong pillar for the qualitative growth and improvement of human capital. Appropriate and necessary education of people will enable business employees to have the necessary knowledge for the activity. The growth of businesses will have its impact on the growth of the country’s economy. People are turning to higher education more and more as a way to enhance their personal wellbeing. Higher education is seen by people as the best way to enable the employment and higher salary in the future. For this reason the focus of this paper is education. The main objective is to understand the impact of higher education in economic growth. This paper analyzes the impact of education through several variables on economic growth in Albania, focusing more on the impact of higher education. The independent variables considered in this paper as representatives of education are mean years of schooling, enrollment in primary education, enrollment in secondary education, enrollment in higher education, while as a representative of growth is used dependent variable Gross Domestic Product (GDP) per capita. From the model we found the variables mean years of schooling and enrollment in higher education are significant and positively related with GDP per capita. The analysis is based on model building with secondary data using the method of least squares.

Keywords: human capital, higher education, school enrollment, GDP per capita

JEL classification: I23, O15, H52

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HOW CITIES IN INDIA CAN ATTRACT MORE RURAL POPULATION?

Sabyasachi TRIPATHI

Institute for Statistical Studies and Economics of Knowledge. National Research University Higher School of Economics, 11 Myasnitskaya St., 101000, Moscow, Russia

sabya.tripathi@gmail.com

Abstract

The low level of rural to urban migration needs to boost up for a higher rate of urbanization and economic development in India.  In this paper, we use cross-section data models to investigate the relevant determinants of rural to urban migration at the city level in India in 2001. City-level analyses show that employment opportunities and availability of infrastructure facilities pull people from rural areas to urban areas; however, a higher level of living cost, poverty, and inequality discourage migration. India’s abundant rural resources such as land and labor need to reallocate to the urban areas to increase productivity and economic growth. In this context, we suggest that management of poverty, inequality, job creation, provision of better infrastructural facilities are essential at the city level to promoting rural to urban migration in India.

Keywords: Urbanization, rural to urban migration, urban economic growth, India

JEL classification: R12, O10, O15

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