The Impact of Zakat on Government's Financial Performance: Empirical Study from Aceh Province in Indonesia

EasyChair Preprint 3802

Abstract

Aceh is the only local government in Indonesia--or perhaps in the world--that practically collects zakat as their source of the local income, with a regulation basis of their own Sharia Law called Qanun. In this background, empirical evidence on how zakat has affected Aceh’s financial performance is essential to prove so that the Indonesian government and other governments could follow Aceh's step in zakat policy implementation. This study aims to prove the hypothesis by using data from 23 districts/municipalities in Aceh province that have already implemented zakat policy. This study convincingly found that zakat could strongly affect the government's financial performance, by positively and significantly increasing Aceh’s financial autonomy.

Keyphrases: Government's Financial Performance, Panel Data Regression, Zakat

@booklet{EasyChair:3802,
  author    = {Fendhi Birowo and Dodik Siswantoro},
  title     = {The Impact of Zakat on Government's Financial Performance: Empirical Study from Aceh Province in Indonesia},
  howpublished = {EasyChair Preprint 3802},
  year      = {EasyChair, 2020}}