The objective of this research is for testing whether profit and loss sharing (PLS) can stabilise inflation compared to interest rate. By using ARDL bound test with monthly data from January 2012 to May 2016, the result shows that PLS that is proxied by national sukuk, mudharabah and musharakah and interest rate simultaneously can affect inflation in Indonesia. Based on coefficient value analysis, PLS that is proxied by national sukuk can stabilise level of inflation in the long run only. Musharakah as other proxy of PLS can stabilise inflation in the short run only. However, mudharabah cannot be used to stabilise inflation both the short run and long run.
Food is essential for human survival, and ensuring its availability is critical. Waqf is present as one of supporting institutions that supports food security. This paper aims to see how waqf can contribute to the food security of a community. Waqf, in its sense is an Islamic philanthropic institution that focus on welfare of Muslim. As a Muslim, it is important to safeguard one’s life as stated in Maqasid As Shariah. This paper employs systematic literature review to see the contribution of waqf through syirkah (partnership) for community food security. Syirkah plays its role as a connector between waqf and food security, with farmers at its spearhead. Syirkah is chosen because it is compatible with farmer’s business and waqf may serve to their business sustainability in general, and farmer’s livelihood in particular. The ultimate goal of this concept is to achieve stability in the supply of staple food which leads to its price stability, hence staple food is available and accessible to all. Furthermore, the stability achieved will reduce the burden of government to provide staple food in times of crisis and to promote welfare and better social cohesion of a community.
As bank of Indonesia with its inflation targeting failed, mainy, to maintain inflation in the range that has been decided and also Indonesia never gain near zero inflation yet as a form of price stability based on some economists, the main objective of this paper is to investigate on how to control level of inflation through modified keynesian consumption model that mainly incorporates zakat and israf. The data that are gathered from 2002-2016 (15 observation years) because of the very lack of data, however, these data shows BLUE and no spurious regression. Venn diagram is utilised to compute important variables in the model, simple regresion and some diagnostic test are conducted to study the coefficient econometrically, and unit root test is conducted to see whether any spurious regression or not. the result shows that zakat will make MPC of muzakki lower than mustahik, as muzakki pays higher zakat to mustahik, this condition will not be followed by increasing level of inflation. However, the study also shows that existing israf (extravagant in consumption) will gradually reduce the ability of zakat to stabilise inflation.
The objective of this study is to analyze the effect of zakat on per capita income as one indicator of economic development. The data is analyzed by Cobb-Douglas production function and panel data analysis model. Study findings show that zakat significantly and positively affect on per capita income. This study also found that compared to Foreign Direct Investment (FDI), most popular instrument of government to increase economic development, zakat has a greater coefficient. In addition, Muslims as a majority population on average unable to contribute significantly to economic development. However, they could contribute to zakat as seen from increase in amount of zakat collection.
The objective of this study is to analyze the effect of zakat on per capita income as one indicator of economic development. The data is analyzed by Cobb-Douglas production function and panel data analysis model. Study findings show that zakat significantly and positively affect on per capita income. This study also found that compared to Foreign Direct Investment (FDI), most popular instrument of government to increase economic development, zakat has a greater coefficient. In addition, Muslims as a majority population on average unable to contribute significantly to economic development. However, they could contribute to zakat as seen from increase in amount of zakat collection.
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