Determinants of Poverty in Aceh Province: The Moderating Role of Zakat, Infaq, and Sadaqah

https://doi.org/10.56225/ijassh.v3i3.336

Authors

  • Cut Syazalisma Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Syiah Kuala, 23111 Kota Banda Aceh, Aceh, Indonesia
  • M. Shabri Abd. Majid Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Syiah Kuala, 23111 Kota Banda Aceh, Aceh, Indonesia
  • Suriani Suriani Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Syiah Kuala, 23111 Kota Banda Aceh, Aceh, Indonesia

Keywords:

Poverty
Human Development Index
Labor force participation
Infrastructure spending
Zakat
Infaq and Sadaqah

Abstract

This study examines the impact of the Human Development Index (HDI), labor force participation, and infrastructure expenditure on poverty levels in Aceh Province, with zakat, infaq, and Sadaqah serving as moderating variables. Utilizing secondary data, the research employs panel regression methods and Moderated Regression Analysis (MRA) to analyze data collected from 23 districts and cities in Aceh Province over the 2008–2022 period. The findings reveal that the HDI and labor force participation rate do not significantly influence poverty in Aceh. However, infrastructure expenditure demonstrates a negative and statistically significant effect, indicating its potential to reduce poverty in the region. Furthermore, zakat, infaq, and sadaqah can moderate the effects of HDI and infrastructure expenditure on poverty but fail to moderate the relationship between labor force participation and poverty. Based on these results, it is recommended that the Aceh Provincial Government adopt more targeted and comprehensive strategies to alleviate poverty. Efforts should focus on enhancing the HDI and labor force participation rates, alongside optimizing the collection and allocation of zakat, infaq, and Sadaqah, and increasing infrastructure investment. Such measures can potentially address the persistent issue of poverty in Aceh Province more effectively

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Published

2024-08-31

How to Cite

Syazalisma, C., Majid, M. S. A., & Suriani, S. (2024). Determinants of Poverty in Aceh Province: The Moderating Role of Zakat, Infaq, and Sadaqah. International Journal of Advances in Social Sciences and Humanities, 3(3), 177–193. https://doi.org/10.56225/ijassh.v3i3.336

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