Determining Factors of Consumption in Islamic Countries in The World with Political Stability as a Moderating Variable

Abstract

Consumption is an object of study that has a different point of view between capitalists and Islam. The concept of consumption in the capitalist emphasizes utility or satisfaction, while in Islam it emphasizes benefit. This is a polemic between the two in understanding consumption. Indeed, maximum consumption while still paying attention to the benefit is a concept that needs to be achieved. Muslim communities who are members of the world's Islamic countries should have implemented this concept, but they are still classified as consumptive. For this reason, this study aims to determine what factors are driving consumption levels in the world's Islamic countries in 2011-2020. This study uses a quantitative study with multiple linear regression method. The ordinary least square model is expected to provide an empirical description of what factors can affect consumption in Organization Islamic countries. The result provide an empirical picture that income is the main indicator as a trigger for increased consumption. In addition, the interest rate offered in investment and the exchange rate against the dollar also makes consumer behavior able to increase consumption patterns. Furthermore, the pattern of household consumption is strongly influenced by the political stability that exists in the Islamic countries of the world. In addition, this government policy can strengthen the relationship between consumption and the exchange rate to encourage higher consumption. This result is expected to be an evaluation material for the governments of Islamic countries in the world to continue to pay attention to the consumption patterns of their people so that they are not included in the consumptive group, but consume productively and still pay attention to maslahah