The effects of investment, monetary policy, and ZIS on economic growth in Indonesia

Ridlo, Musalim; Wardani, Laeli Dwi

doi:10.18326/ijier.v2i2.3776

Cited by 4 publications

(6 citation statements)

References 10 publications

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“…ZIS is an Islamic social financial instrument that has the potential to overcome the problems of the Ummah, such as poverty, and even the opportunity to generate economic growth in a country (Ridlo & Wardani, 2020). The amount of ZIS funds in Indonesia is increasing every year because Indonesia is the largest Muslim country population at this time.…”

Section: Islamic Social Finance and Economic Growthmentioning

confidence: 99%

“…Previous research regarding the influence of Islamic social finance, such as ZIS on economic growth has been developed in many countries, such as Pakistan (Azam et al, 2014), Malaysia (Khasandy & Badrudin, 2019), eight selected Muslim countries (Jedidia & Guerbouj, 2020), and Indonesia (Alghina et al, 2019;Arwani & Wahdati, 2020;Athoillah, 2018;Munfaati & Noviarita, 2023;Putriani et al, 2020;Ridlo & Wardani, 2020;Ridlo et al, 2021;Ridwan & Pimada, 2019;Suhendar et al, 2022;Supratman & Asih, 2022;Suprayitno, 2020;Triyawan et al, 2022;Wardani & Al Arif, 2021). Most studies find that Islamic social financial instruments (e.g ZIS) have a positive and significant effect on economic growth, but on the other hand, Islamic social finance has no significant effect (Munfaati & Noviarita, 2023;Ridlo & Wardani, 2020). ZIS negatively influences economic growth (Khasandy & Badrudin, 2019;Suhendar et al, 2022).…”

Section: Islamic Social Finance and Economic Growthmentioning

confidence: 99%

“…Considering the potential of Islamic social finance funds (e.g ZIS), which can contribute to the country's economy, previous research has proven this empirically. Most studies focus on Muslim-majority countries such as Pakistan (Azam et al, 2014), Malaysia (Khasandy & Badrudin, 2019), eight selected Muslim countries (Jedidia & Guerbouj, 2020), and Indonesia (Alghina et al, 2019;Arwani & Wahdati, 2020;Athoillah, 2018;Munfaati & Noviarita, 2023;Putriani et al, 2020;Ridlo & Wardani, 2020;Ridlo et al, 2021;Ridwan & Pimada, 2019;Suhendar et al, 2022;Supratman & Asih, 2022;Suprayitno, 2020;Triyawan et al, 2022;Wardani & Al Arif, 2021). Although research on the contribution of ZIS on GDP growth continues to grow, most studies use panel data with limited period research.…”

Section: Introductionmentioning

confidence: 99%

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The contribution of Islamic social finance to economic growth in Indonesia

Siswantoro

Ikhwan

2023

RISFE

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Purpose – This study aims to identify the contribution of Islamic social finance (Zakat, Infaq, and Shadaqah or ZIS) to economic growth in Indonesia, both in the long-term and short-term models. Based on previous studies, government expenditure; investment; and trade openness are also included in the model as control variables.Methodology – Annual time series data for 21 years from 2002 to 2022 were analyzed using the Error Correction Model (ECM) approach to determine the long-term and short-term effects of independent variables on economic growth.Findings – The main findings of this study confirm that Islamic social finance (ZIS) is a financial instrument that benefits the economy. ZIS can be an alternative fund for overcoming various problems of the Muslim Ummah and revitalizing the economy, even more so in a country with a majority Muslim population like Indonesia where ZIS instruments such as Zakat are obligatory to be issued to able-bodied Muslims. The study results show that the effect of ZIS on economic growth in Indonesia is felt in the long term, while in the short term, it has no significant impact.Implication – This research provides insight for related parties (especially National Board of Zakat/Badan Amil Zakat Nasional, BAZNAS) further to optimize the potential of ZIS into productive sectors to improve the economy.Originality – Most previous studies used panel data with a limited period to estimate the effect of Islamic social finance on economic growth, while this research utilized time series data with the ECM approach for a longer period.

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Section: Islamic Social Finance and Economic Growthmentioning

confidence: 99%

Section: Islamic Social Finance and Economic Growthmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The contribution of Islamic social finance to economic growth in Indonesia

Siswantoro

Ikhwan

2023

RISFE

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“…Sebenarnya masih ada potensi yang dapat digali khusunya oleh pemerintah daerah dalam menggali potensi daerah termasuk menggsali sumber pendanaan seperti zakat. Zakat diyakini dapat menangani persoalan sosial termasuk kemiskinan dan kesenjangan pendapatan masyarakat jika dilaksanakan dan didistribusikan dengan benar (Ridlo, 2020). Diungkapkan oleh Prof KH Noor Achmad selaku ketua Badan Amil Zakat Nasional periode 2021, bahwa pengumpulan dana ZIS pada 2020 mengalami pertumbuhan 42,16% atau Rp 4.311,65 miliar dibanding tahun sebelumnya.…”

Section: Pendahuluanunclassified

Analisis Pengaruh Dana ZIS (Zakat, Infak, Sedekah), Pertumbuhan Ekonomi, Angka Harapan Hidup, Rata-Rata Lama Sekolah, Dan Pengeluaran Perkapita Terhadap Tingkat Kemiskinan Di Indonesia Periode 2010-2021

Wulandari,

Nugraha Pratama

2022

JIEI

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This study was conducted to find out how the influence of ZIS, economic growth, life expectancy, average length of schooling, and per capita expenditure on poverty levels in Indonesia for the period 2010-2021. This study uses secondary data in the form of time series. The data collection method was carried out by taking data from the documentation of the relevant institutions, namely the Indonesian Central Statistics Agency (BPS) and BAZNAS. The data obtained were then processed using the tools of eviews 10. In this study, a purposive sampling technique was used, namely the selection of a group of subjects based on certain characteristics that were seen to be related to the population used in the study. The sample used includes ZIS (Zakat, Infak, Alms), economic growth, life expectancy, average length of schooling, per capita expenditure, and poverty level. The analysis technique used is stationary test, classical assumption test, multiple linear regression, and hypothesis testing. The results of this study indicate that Zakat, Infaq and Alms (ZIS) have an insignificant negative effect on poverty. Economic growth has no significant positive effect on poverty. Life expectancy has a significant negative effect on poverty in Indonesia. The average length of schooling has a significant positive effect on poverty levels. Per capita expenditure has a significant negative effect on poverty levels. The independent variable simultaneously has a significant effect on the dependent variable.

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“…Although the Net Asset Value (NAV) of Islamic mutual funds grew positively, not offset by an increase in company productivity, household consumption and government spending would certainly have a negative impact on economic growth. In the panjan period, Sharia mutual funds also have a negative effect on economic growth, according to Ridlo and Wardani (2020) caused by market risks such as macroeconomic developments and negative foreign investment sentiment that have an impact on investment in Indonesia. Although the largest type of sharia mutual fund is the type of protected mutual fund which reaches 33%, the large type of foreign securities mutual fund which reaches 17% seems to be the reason why sharia mutual funds have a negative impact on economic growth in Indonesia.…”

Section: Effect Of Sharia Mutual Funds (Rds) On Indonesia's Economic ...mentioning

confidence: 99%

The Influence of Islamic Financial Instrumens On Indonesia's Economic Growth: An AutoregressiveE Distributed Lag Approach

Andiansyah

Hanafi²,

Haryono³

et al. 2022

Al-Amwal : Jurnal Ekonomi Dan Perbankan Syari'ah

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The growth of Islamic finance in Indonesia has experienced very significant growth. The Indonesian government hopes that the financial sector will become an important instrument in promoting economic growth in Indonesia, but it seems that the percentage of economic growth in Indonesia has declined over the past decade. This study aims to analyze the impact of Islamic financial instruments on economic growth in Indonesia. This study uses a quantitative method with an Autoregressive Distributed Lag (ARDL) model analysis tool. The results of this study show that all Islamic financial instrument variables have a negative effect on economic growth in the short term. Meanwhile, in the long term, all independent variables have a positive effect on economic growth except for Sharia Mutual Funds which show a negative effect and Sharia Bank Financing and Sharia Stocks have no effect on economic growth in Indonesia. Thus, it can be concluded that Islamic financial instruments in the long term have a positive influence on encouraging economic growth in Indonesia.

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The effects of investment, monetary policy, and ZIS on economic growth in Indonesia

Cited by 4 publications

References 10 publications

The contribution of Islamic social finance to economic growth in Indonesia

The contribution of Islamic social finance to economic growth in Indonesia

Analisis Pengaruh Dana ZIS (Zakat, Infak, Sedekah), Pertumbuhan Ekonomi, Angka Harapan Hidup, Rata-Rata Lama Sekolah, Dan Pengeluaran Perkapita Terhadap Tingkat Kemiskinan Di Indonesia Periode 2010-2021

The Influence of Islamic Financial Instrumens On Indonesia's Economic Growth: An AutoregressiveE Distributed Lag Approach

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