Handbook of Empirical Research on Islam and Economic Life
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Handbook of Empirical Research on Islam and Economic Life

Edited by M. Kabir Hassan

In Islamic jurisprudence, a comprehensive ethic has been formulated governing how business and commerce should be run, how accountability to God and the community is to be achieved, and how banking and finance is to be arranged. This Handbook examines how well these values are translated into actual performance. It explores whether those holding true to the system are hindered and put at a disadvantage or whether the Islamic institutions have been able to demonstrate that faith-based activities can be rewarding, both economically and spiritually.
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Chapter 4: Evaluating the impact of zakat by indicator of disaggregated Human Development Index: an empirical finding

Mohammad Soleh Nurzaman

Abstract

Previous research on zakat has shown findings that suggest a positive relation of zakat on the welfare of mustahiq. However, it can be deduced that there is no specific research about the relationship of zakat and an integrated welfare indicator such as a human development index. This chapter looks to contribute to this research area by examining survey data from the beneficiaries of productive-based zakat and non-zakat that have received funding from zakat institutions in the region of the capital city of Indonesia, Jakarta, and secondary data primarily from the World Health Organization and Badan Pusat Statistik (Indonesia Statistical Office). A regression analysis is performed to see whether productive-based zakat has an effect on the Human Development Index (HDI) and its components. This data analysis method shows that HDI can be disaggregated into household level, which can further be utilized to evaluate welfare across the household level of mustahiq and can be expanded so that it is not restricted to only mustahiqs as the object of measurement.

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