The Effect of Sharia Bank Financing, Zakat, and Education Expense on Economic Growth and Human Development Index in Indonesia 2015 – 2019

Author : Indah Indria Wardani (UIN Syarif Hidayatullah Jakarta), M Nur Rianto Al Arif (UIN Syarif Hidayatullah Jakarta)

Abstract : Islamic bank financing, zakat, and education expenditure can increase Indonesia’s economic growth and Human Development Index (HDI). Islamic bank financing could be funding capital for the community. Zakat plays a role in wealth distribution, while education expenditure contributes by improving the quality of human resources. This study analysed the direct and indirect relationship between Islamic bank financing, zakat, and education expenditure to economic growth and HDI. Data were analysed using path analysis based on panel data for the period 2015-2019. The results showed that the Islamic bank financing, zakat and education expenditure had a significant positive effect on economic growth. Islamic bank financing, zakat, and education expenditure had a significant positive impact on HDI. At the same time, the indirect implications showed that Islamic bank financing, zakat, and education expenditure have a significant positive effect on HDI through economic growth. 

Keywords: Islamic Bank Financing, Zakat, Education Expenditure, Economic Growth, and Human Development Index (HDI)

Journal : Ekonomika Syariah: Jurnal of Economic Studies Volume 5 Issue 1 2021

Link: http://dx.doi.org/10.30983/es.v5i1.4096

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