Examining the Effect of Investment, Zakat and Poverty on Economic Growth in Indonesia: A Moderation Analysis

https://doi.org/10.56225/finbe.v3i2.314

Authors

  • Irpan Deni Syahwitra Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, 23111 Syiah Kuala, Banda Aceh, Aceh, Indonesia
  • Suriani Suriani Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, 23111 Syiah Kuala, Banda Aceh, Aceh, Indonesia
  • Muhammad Nasir Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, 23111 Syiah Kuala, Banda Aceh, Aceh, Indonesia

Keywords:

Economic Growth, Foreign Direct Investment, DDomestic Direct Investment, Poverty, Zakat

Abstract

Economic growth denotes a sustained increase in a nation's production of goods and services, functioning as a crucial indicator of economic vitality and advancement. This phenomenon reflects improved living standards, such as elevated income levels and enhanced prosperity. This study investigates the moderating role of investment and zakat in the relationship between poverty and economic growth. Utilising annual panel data from 30 provinces from 2018-2022, this study employs Moderated Regression Analysis (MRA) to examine how zakat influences this relationship. This analysis aims to determine whether zakat amplifies or diminishes the impact of poverty on economic growth. The findings reveal that domestic and foreign investment has distinct effects on economic growth with varying impacts across different contexts. Poverty was found to have a significant negative effect on economic growth, underscoring the importance of addressing poverty in fostering sustainable development. Zakat demonstrated a significant negative moderating effect on the relationship between poverty and economic growth. This suggests that, under current management practices, zakat may not be as effective in alleviating poverty or supporting growth as intended. Based on these results, this study recommends improving zakat management in Indonesia, highlighting its potential to play a more substantial role in poverty reduction and economic development. Strengthening the administration and distribution of zakat could enhance its effectiveness in promoting equitable growth and reducing poverty, ultimately contributing to a more inclusive and prosperous economy.

Downloads

Download data is not yet available.

References

Aart Kraay. (2006). When Is Growth Pro-Poor? Evidence from a Panel of Countries. Journal of Development Economics, 80(1), 198–227. https://doi.org/10.1016/j.jdeveco.2005.02.004

Agustina, M., Abd. Majid, M. S., Musnadi, S., Faisal, F., Hafasnuddin, H., & Suriani, S. (2022). Islamic Banking, Economic Growth, and Poverty Reduction in Indonesia. International Conference on Decision Aid Sciences and Applications, DASA, June, 1249–1253. https://doi.org/10.1109/DASA54658.2022.9765089

Aminda, R. S., & Rinda, R. T. (2019). Analisis Penanaman Modal Asing dan Penanaman Modal Dalam Negeri dan Pengaruhnya terhadap Pertumbuhan Eekonomi ( Tahun 2010-2018). 2019: Management Dynamic Conference 5 (Madic 5), 103–109.

Amran, E., Faisal, A., & Octaviani, D. (2023). The Influence of The Human Development Index and Unemployment on Poverty : Zakat as Moderation. 4th Borobudur International Symposium on Humanities and Social Science 2022, 299–306. https://doi.org/10.2991/978-2-38476-118-0

Buana, A. L., Saragih, H. J. R., & Aritonang, S. (2018). Pengaruh Pengeluaran Pemerintah, Investasi Pemerintah, Investasi Swasta dan Tenaga Kerja Terhadap Pertumbuhan Ekonomi di Pulau Jawa Tahun 2011 - 2015. Jurnal Ekonomi Pertahanan, 4(2), 1–20.

Dewi, R., Imsar, & Tambunan, K. (2023). Pengaruh Ekonomi Digital, Investasi dan Dana Zakat Infak Sedekah Terhadap Pertumbuhan Ekonomi. JIEP: Jurnal Ilmu Ekonomi Dan Pembangunan, 5(1), 315–326.

Ginting, A. M., & Rasbin. (2010). Pengaruh pertumbuhan ekonomi terhadap tingkat kemiskinan di Indonesia sebelum dan setelah krisis. Jurnal Ekonomi & Kebijakan Publik, 2(1), 279–312.

Harahap, R. D., & M. Shabri, A. M. (2021). Analysis of Income Distribution Inequality in Indonesia for the 2017-2021 Period. International Journal Of Global Economics and Finance, 1(2), 17–30.

Hismendi, H., Masbar, R., & Nazamuddin, N. (2021). Sectoral Stock Markets and Economic Growth Nexus : Empirical Evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8(4), 11–19. https://doi.org/10.13106/jafeb.2021.vol8.no4.0011

Jannah, S. R., Suriani, S., & Yulindawati, Y. (2022). Effect of Labor and Foreign Investment on Economic Growth in Indonesia. Jurnal Ekonomi Dan Kebijakan Publik Indonesia, 9(1), 51–67. https://doi.org/10.24815/ekapi.v9i1.28587

Jayadi, D. S., & Bata, A. G. (2016). Peran Pertumbuhan Ekonomi Dalam Menurunkan Kemiskinan di Tingkat Provinsi di Indonesia Tahun 2004-2012. Modus, 28(1), 87–99. https://doi.org/10.24002/modus.v28i1.669

Jedidia, K. Ben, & Guerbouj, K. (2021). Effects of zakat on the economic growth in selected Islamic countries: empirical evidence. International Journal of Development Issues, 20(1), 126–142. https://doi.org/https://doi.org/10.1108/IJDI-05-2020-0100

Jogiyanto, H. (2010). Teori Portofolio dan Analisis Investasi. BPFE UGM, Jogjakarta.

Kambono, H., & Marpaung, E. I. (2020). Pengaruh Investasi Asing dan Investasi Dalam Negeri terhadap Pertumbuhan Ekonomi Indonesia. Jurnal Akuntansi, 12(1), 137–145.

Mowafi, M., & Khawaja, M. (2005). Poverty. Journal of Epidemiology and Community Health, 59(4), 260–264. https://doi.org/https://doi.org/10.1136/jech.2004. 022822.

Mursalina, M., Raja, M., & Suriani, S. (2022). Impact of Covid-19 Pandemic on Economic Growth of the Tourism Sector in Indonesia. International Journal of Quantitative Research and Modeling, 3(1), 18–28.

Rahmadi, S., & Parmadi, P. (2019). Pengaruh ketimpangan pendapatan dan kemiskinan terhadap pertumbuhan ekonomi antar pulau di Indonesia. Jurnal Paradigma Ekonomika, 14(2), 55–66. https://doi.org/10.22437/paradigma.v14i2.6948

Ridlo, M., & Wardani, L. D. (2020). The effects of investment, monetary policy, and ZIS on economic growth in Indonesia. Indonesian Journal of Islamic Economics Research, 2(2), 95–103. https://doi.org/10.18326/ijier.v2i2.3776

Rizky, R. L., Agustin, G., & Mukhlis, I. (2016). Pengaruh Penanaman Modal Asing, Penanaman Modal Dalam Negeri Dan Belanja Modal Terhadap Pertumbuhan Ekonomi Provinsi Di Indonesia. Jurnal Ekonomi Dan Studi Pembangunan, 8(1), 9–16. https://doi.org/10.56076/jkesp.v6i3.2165

Samuelson, P. A., & Nordhaus, W. D. (2004). Ilmu Makro Ekonomi. PT Media Global Edukasi.

Somba, A., Engka, D. S. ., & Sumual, J. I. (2021). Analisis Pengaruh Pengangguran dan Kemiskinan terhadap Pertumbuhan Ekonomi di Sulawesi Utara. Jurnal Berkala Ilmiah Efisiensi, 21(05), 63–74.

Sugiharjo, D., Suriani, S., & Seftarita, C. (2022). The Effect of Education and Health on Poverty Reduction in Aceh Province, Indonesia: Moderating Role of Special Autonomy Fund. International Journal of Finance, Economics and Business, 1(4), 292–302. https://doi.org/10.56225/ijfeb.v1i4.78

Sukirno, S. (2006). Makroekonomi Teori Pengantar. Raja Grafindo Persada.

Sumodinigrat, G. (1999). Pemberdayaan Masyarakat, Jaring Pengaman Sosia. PT Gramedia Pustaka Utama : Jakarta.

Suprayitno, E. (2020). The Impact of Zakat on Economic Growth in 5 State in Indonesia. International Journal of Islamic Banking and Finance Research, 4(1), 1–7. https://doi.org/10.46281/ijibfr.v4i1.470

Suriani, Nurdin, R., & Riyaldi, M. H. (2020). Causality Relationship of Zakat, Income Inequality, and Poverty: A Panel Co-Integration Approach. International Journal of Economics and Business Administration, VIII(Issue 4), 875–887. https://doi.org/10.35808/ijeba/637

Suriani, S. (2015). Pengaruh kemiskinan, angkatan kerja perempuan dan usia kawin pertama terhadap pertumbuhan ekonomi di Provinsi Aceh. Jurnal Demografi Aceh, 1(1), 71–93.

Suriani, Suriani, Riyaldi, M. H., Nurdin, R., Fadliansah, O., & Wintara, H. (2021). Zakat and Sustainable Development: Effect of Zakat and Macroeconomic Variables on Dependency Ratio and Poverty. International Conference on Decision Aid Sciences and Application, DASA 2021, April 2022, 392–396. https://doi.org/10.1109/DASA53625.2021.9682377

Tandelilin, E. (2010). Portofolio dan Investasi: Teori Dan Aplikasi (Pertama). Kanisius, Yogyakarta.

Todaro, & Smith, S. C. (2006). Pembangunan Ekonomi Edisi kesembilan (Kesembilan). Jakarta : Erlangga.

Wahyudi, I. P. A. R., & Yuliarmi, N. N. (2018). Pengaruh Jumlah Tenaga Kerja Dan Penanaman Modal Dalam Negeri Terhadap Pertumbuhan Ekonomi Dan Tingkat Kemiskinan. E-Jurnal Ekonomi Pembangunan Universitas Udayana, 10(3), 1187–1218.

Downloads

Published

2024-08-31

How to Cite

Deni Syahwitra, I., Suriani, S., & Nasir, M. (2024). Examining the Effect of Investment, Zakat and Poverty on Economic Growth in Indonesia: A Moderation Analysis. Frontiers in Business and Economics, 3(2), 87–94. https://doi.org/10.56225/finbe.v3i2.314

Issue

Section

Articles