The Effect Of Zakat Performance And Macroeconomic Variables On Poverty Levels (Empirical Study In 34 Provinces In Indonesia)

Abstract

Poverty is a phenomenon that is often highlighted in several countries including Indonesia, which in fact applies two economic policy systems. The policies enacted will be mutually sustainable to achieve national development goals, one of the main problems of which is reducing the poverty rate. However, in the 2019-2021 timeframe, the poverty rate in Indonesia has not shown a significant decline. This study aims to analyze the distribution of zakat funds and macroeconomic variables in influencing the poverty rate. The macroeconomic variables studied are government expenditure, human development index (HDI), inflation and gini ratio. The population in this study is poverty data in 34 provinces in Indonesia. The data used in this study is panel data from 34 provinces in Indonesia, with a total sample size of 102. The results showed that zakat distribution has a negative effect on the poverty rate. While government spending, human development index (HDI), and inflation do not affect the poverty rate. There is also a gini ratio that has a positive effect on the poverty rate.