Assessing the Influence of Zakat, Islamic Human Capital Development, and Government Interventions on Indonesia’s Economic Growth

Anas Ahmed Khamees; Retno  Fitrianti

doi:10.30983/iciefs.v3i1.910

Authors

Anas Ahmed Khamees The Rosy City for Educational Services and Consultations, Amman, Jordania
Retno Fitrianti Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245

DOI:

https://doi.org/10.30983/iciefs.v3i1.910

Keywords:

Economic Growth, Government Support, Islamic Human Development, Indonesia, Industrialization, Population Growth, Zakat

Abstract

This study explores the relationship between Zakat, Islamic Human Development (IHD), and government support on Indonesia's economic growth (EG). As the largest Muslim-majority country, Indonesia presents a compelling case for assessing the effectiveness of Islamic financial instruments in enhancing inclusive development. Using annual data from 1981 to 2020 and the Dynamic Autoregressive Distributed Lag (DARDL) model, we find that all three factors Zakat, IHD, and government support positively and significantly influence EG. Industrialization and population growth are incorporated as control variables and also demonstrate significant roles. The findings provide vital policy insights for integrating Islamic finance mechanisms into Indonesia’s broader economic strategy.

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