The Impact of Islamic Social Finance, Gender Development Index and Inflation on Indonesia’s Economic Growth in 2011-2020

Abstract

Economic growth is the goal that every country wants to achieve. Economic growth is one of the indications of whether or not a country is developing. Over the past 10 years, economic growth has been volatile and has shown a downward trend in 2020 due to the Covid-19 pandemic. This study aims to investigate the impact of Islamic social finance, Gender Development Index (IPG) and Inflation on Indonesia's economic growth in vulnerable periods from 2011 to 2020. The approach used in this study is a quantitative approach based on secondary data taken from Gross Regional Domestic Product (GRDP) data on the basis of constant prices, Islamic social finance, Gender Development Index, and Inflation. The data analysis method used is in the form of a time series regression which consists of a data stationarity test, an optimum lag test, a cointegration test, and a granger causality test. The results of this study show that the variables of Islamic social finance, gender development index, and inflation simultaneously have a significant positive influence on Indonesia's economic growth. Meanwhile, partially, the study found mixed results, including the Islamic social finance and the Gender Development Index (IPG) had a positive and significant impact, while inflation was positive but not significant on Indonesia's economic growth.

Can Zakat Contribute to Achieving Sustainable Development Goals? A Case Study on Java Island, Indonesia.

“…However, research on zakat with a gender development index is still limited. Researchers only found this discussion in the research of Fatimatuzzahra and Fathoni (2023), which also discussed Islamic social finance, not specifically regarding zakat. The novelty of this paper lies in the study of zakat with the gender development index.…”