Effects of zakat on the economic growth in selected Islamic countries: empirical evidence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khoutem Ben Jedidia ◽  
khouloud Guerbouj
Keyword(s):  
Economic Growth ◽  
Growth Factor ◽  
Panel Data ◽  
Aggregate Demand ◽  
Empirical Support ◽  
Dynamic Panel Data ◽  
Content Type ◽  
Muslim Countries ◽  
The Government ◽  
The Impact

Purpose This study aims to examine the impact of zakat on the economic growth for a sample of Muslim countries. As a matter of fact, Zakat is a religious tax on wealth paid annually to specified recipients. As it leads to income redistribution and increases the aggregate demand, zakat can be a growth factor in the Islamic framework. Design/methodology/approach This paper is based on a dynamic panel data model for the purpose of investigating the role of zakat in the economic growth for a sample of eight Muslim countries during the period ranging from 2004 to 2017. The general method of moments is applied. Findings The findings provide evidence that zakat stimulates the country’s growth. Indeed, as zakat funds are directed to increase consumption, investment or government expenditure, they spur on the economic growth. Moreover, the authors come to the conclusion that more trade openness allows an increase in the real gross domestic product (GDP) per capita. However, the broad money to GDP and population growth rate seem insignificantly associated with the economic growth for the sample considered. Practical implications The findings have substantial implications for the economic policy in Muslim countries. Authorities may further rely on zakat to boost the economic growth. First, it is essential to improve the muzakki’s knowledge on zakat to increase their intention, and so their ability and willingness to pay zakat. Second, the government intervention in both zakat collect and distribution becomes mandatory. Therefore, the contribution of zakat to the economic growth will be higher. This requires better-quality services of zakat institutions. Originality/value A few studies have empirically looked into the impact of zakat on the economic growth, especially for panel data. Hence, the present study tries to enrich the literature on this topic. It creates significant evidence regarding the relevance of zakat in Muslim countries. The findings provide empirical support that zakat is an additional growth factor in the Islamic framework.

Oil exports and non-oil exports

2017 ◽  
Vol 44 (4) ◽  
pp. 540-551 ◽  
Author(s):  
Huseyin Karamelikli ◽  
Guray Akalin ◽  
Unal Arslan
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Dynamic Panel Data ◽  
Cross Sectional ◽  
Content Type ◽  
Oil Exports ◽  
Cross Sectional Dependence ◽  
The Cross ◽  
Opec Member ◽  
The Impact

Purpose The purpose of this paper is to examine the dynamic relationship between oil exports, non-oil exports, imports and economic growth in the Organization of Petroleum Exporting Countries (OPEC), covering the period 1972-2013 by using panel data analysis. Design/methodology/approach The results from the dynamic panel data methods are as follows: there exists the cross-sectional dependence on each variable. According to the cross-sectionally augmented panel unit root tests, all variables are stationary at the first difference. Westerlund and Edgerton (2007) LM Bootstrap cointegration test shows that there is a long-term relationship between variables. Findings The results obtained by the Common Correlated Effects (CCE) estimator indicate that the increase in oil exports has a positive impact on the GDP of all countries, while the increase in oil exports has a negative impact on the non-oil exports of some countries. Originality/value In this study, the relationship between oil exports, economic growth, imports and non-oil exports of the 12 OPEC member countries is tested by considering the cross-sectional dependence between 1972 and 2013. In the study, the authors found a positive relationship as a result of researching the impact of oil exports on economic growth in the frame of CCE panel estimations results.

The impact of economic and financial development on environmental degradation

2015 ◽  
Vol 32 (4) ◽  
pp. 485-502 ◽  
Author(s):  
Samia Nasreen ◽  
Sofia Anwar
Keyword(s):  
Panel Data ◽  
Financial Development ◽  
Environmental Degradation ◽  
Low Income ◽  
Ordinary Least Squares ◽  
Dynamic Panel Data ◽  
High Income ◽  
Empirical Literature ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this study is to validate the impact of economic and financial development along with energy consumption on environmental degradation using dynamic panel data models for the period 1980-2010. The study uses three sub-panels constructed on the basis of income level to make panel data analysis more meaningful. Design/methodology/approach – Larsson et al. panel cointegration technique, fully modified ordinary least squares and vector error correction model causality analysis are applied for empirical estimation. Findings – Main empirical findings demonstrate that financial development reduces environmental degradation in the high-income panel and increases environmental degradation in the middle- and low-income panels. Hypothesis of the environmental Kuznets curve is accepted in all income panels. Granger causality results show the evidence of bidirectional causality between financial development and CO2 emission in the high-income panel, and unidirectional causality from financial development to CO2 emission in the middle- and low-income panels. Originality/value – In empirical literature, only a few studies explain the effect of financial development on environment. The present study is an effort to fill this gap by exploring the effect of economic and financial development on environmental degradation.

Economic growth in European Union: does IFRS mandatory adoption matter?

2019 ◽  
Vol 14 (5) ◽  
pp. 792-808 ◽  
Author(s):  
Clement Oppong ◽  
Mehmet Aga
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Financial Reporting ◽  
Developing Economies ◽  
Dynamic Panel Data ◽  
Content Type ◽  
Ifrs Adoption ◽  
Stage Of Development ◽  
Mandatory Adoption ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of International Financial Reporting Standards (IFRS) adoption on economic growth. Design/methodology/approach Using data from 2005–2014, the study examined whether the mandatory adoption of IFRS increases economic growth synchronicity in the European Union (EU) context. The study utilizes a sample of 28 countries containing 10-year observations in the EU market where IFRS have been adopted since 2005. The empirical model, relating to economic growth synchronicity with the adoption of IFRS, and other country-specific control variables were analyzed using the dynamic panel data technique. Findings Different specifications of the model results showed that IFRS adoption improves the economic growth and that IFRS adoption matters for developing economies than developed ones. It is, therefore, recommended that authorities in Europe should try to enforce the adoption and implementation of IFRS, especially among the developing economies. Originality/value The paper’s investigation of the impact of IFRS on economic growth expands the extant literature. Studies that dealt with IFRS impacts mostly fixate on the accounting benefits of IFRS adoption to institutional investors and fail to capture the commensurate impact of IFRS adoption on macroeconomic indicators. This little attention is because prior researchers suggest IFRS adoption is important in shaping financial reporting characteristics which provide useful information to the prime users of financial reports. Also, separating the study’s countries into developed and developing countries would help delineate the impact of IFRS adoption on economic growth based on the stage of development.

scholarly journals Real exchange rate undervaluation and sectoral growth in South Africa

2018 ◽  
Vol 9 (4) ◽  
pp. 462-476
Author(s):  
Brian Tavonga Mazorodze ◽  
Dev D. Tewari
Keyword(s):  
South Africa ◽  
Exchange Rate ◽  
Panel Data ◽  
Real Exchange Rate ◽  
Positive Impact ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Content Type ◽  
Sectoral Growth ◽  
The Impact

PurposeThe purpose of this paper is to establish the empirical link between real exchange rate (RER) undervaluation and sectoral growth in South Africa between 1984 and 2014.Design/methodology/approachThe study employs a dynamic panel data approach estimated by the system generalised method of moments technique in a bid to control for endogeneity.FindingsThe authors find a significant positive impact of undervaluation on sectoral growth which increases with capital accumulation. Also, the authors confirm that undervaluation promotes sectoral growth up to a point where further increases in undervaluation retards growth.Practical implicationsThe results confirm the importance of policies that keep the domestic currency weaker to foster sectoral growth.Originality/valueThe originality of this paper lies in establishing the impact of exchange rate undervaluation on growth at a sector level in the context of South Africa using a dynamic panel data approach.

scholarly journals Internet Development, Level of Industrial Synergy, and Urban Innovation

2021 ◽  
Vol 13 (22) ◽  
pp. 12410
Author(s):  
Hongxia Zhang ◽  
Zixuan Sun ◽  
Ehsan Elahi ◽  
Yuge Zhang
Keyword(s):  
Panel Data ◽  
Positive Impact ◽  
Dynamic Panel Data ◽  
The Internet ◽  
Positive Role ◽  
Heterogeneous Effects ◽  
The Government ◽  
Internet Development ◽  
The Impact ◽  
Industrial Collaboration

Innovation increases total factor productivity and leads to economic development. Based on panel data of 284 prefecture-level cities from 2001 to 2018, the current study uses a dynamic panel data model to empirically test the global and heterogeneous effects of internet development and industrial synergy on the level of urban innovation. Results found that the internet development significantly promoted the urban innovation level, and industrial collaboration was found to have a positive impact on the urban innovation level. Moreover, it was determined that the regulatory effect of the internet promoted industrial collaboration to improve the level of urban innovation. Variations in the impact of internet development and the industrial collaboration level on the urban innovation level were found in cities. Particularly, the impact of internet development and the industrial collaboration level on the urban innovation level in high-level cities was less significant. A positive role of the government is required to improve the level of urban innovation. Particularly, it is required to connect enterprises with universities to exchange scientific and technological knowledge, thereby improving urban innovation.

Productivity, wages and profits among Belgian firms: do fixed-term contracts matter?

2016 ◽  
Vol 37 (2) ◽  
pp. 303-322 ◽  
Author(s):  
Andrea Garnero ◽  
Romina Giuliano ◽  
Benoit Mahy ◽  
François Rycx
Keyword(s):  
Panel Data ◽  
Labour Productivity ◽  
Dynamic Panel Data ◽  
Methodological Issues ◽  
Dynamic Panel ◽  
State Dependency ◽  
Content Type ◽  
Positive Effects ◽  
Time Invariant ◽  
The Impact

Purpose – The purpose of this paper is to estimate the impact of fixed-term contracts (FTCs) on labour productivity, wages (i.e. labour cost), and productivity-wage gaps (i.e. profits). Design/methodology/approach – The authors apply dynamic panel data techniques to detailed Belgian linked employer-employee panel data covering the period 1999-2006. Findings – Results indicate that FTCs exert stronger positive effects on productivity than on wages and (accordingly) that the use of FTCs increases firms’ profitability. Originality/value – This paper is one of the first to examine the FTC-productivity-wage nexus while addressing three important methodological issues related to the state dependency of the three explained variables, to firm time-invariant heterogeneity, and to the endogeneity of FTCs.

The impact of infrastructure investment and development on economic growth on BRICS

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rohit Apurv ◽  
Shigufta Hena Uzma
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Panel Data ◽  
Least Square ◽  
Infrastructure Investment ◽  
Content Type ◽  
Brics Countries ◽  
Effect Model ◽  
Telecommunication Infrastructure ◽  
The Impact

Purpose The purpose of the paper is to examine the impact of infrastructure investment and development on economic growth in Brazil, Russia, India, China and South Africa (BRICS) countries. The effect is examined for each country separately and also collectively by combining each country. Design/methodology/approach Ordinary least square regression method is applied to examine the effects of infrastructure investment and development on economic growth for each country. Panel data techniques such as panel least square method, panel least square fixed-effect model and panel least square random effect model are used to examine the collective impact by combining all countries in BRICS. The dynamic panel model is also incorporated for analysis in the study. Findings The results of the study are mixed. The association between infrastructure investment and development and economic growth for countries within BRICS is not robust. There is an insignificant relationship between infrastructure investment and development and economic growth in Brazil and South Africa. Energy and transportation infrastructure investment and development lead to economic growth in Russia. Telecommunication infrastructure investment and development and economic growth have a negative relationship in India, whereas there is a negative association between transport infrastructure investment and development and economic growth in China. Panel data results conclude that energy infrastructure investment and development lead to economic growth, whereas telecommunication infrastructure investment and development are significant and negatively linked with economic growth. Originality/value The study is novel as time series analysis and panel data analysis are used, taking the time span for 38 years (1980–2017) to investigate the influence of infrastructure investment and development on economic growth in BRICS Countries. Time-series regression analysis is used to test the impact for individual countries separately, whereas panel data regression analysis is used to examine the impact collectively for all countries in BRICS.

Do low gasoline prices cause more traffic fatalities in the 50 states of the USA? The importance of other factors

2019 ◽  
Vol 46 (3) ◽  
pp. 777-795
Author(s):  
Shawkat Hammoudeh ◽  
Seong-Min Yoon ◽  
Ali Kutan
Keyword(s):  
Panel Data ◽  
Alcohol Consumption ◽  
Dynamic Panel Data ◽  
Gasoline Prices ◽  
Dynamic Panel ◽  
Content Type ◽  
The Usa ◽  
The Media ◽  
Per Capita ◽  
The Impact

Purpose Motivated by the news media and a lack of comprehensive research on the USA, the purpose of this paper is to examine the relationship between changes in road fatalities and gasoline prices, per capita disposable personal income, alcohol consumption per adult, blood alcohol concentration (BAC) limits and gender. Design/methodology/approach This study employs both static and dynamic panel data models, making use of annual data over the 2000–2013 period collected from the 50 states of the USA and the consistent system GMM estimators of the parameters, to estimate the impact of these variables on fatalities per 100,000 persons and per 100,000 vehicles. Findings The results highlight the importance of gasoline prices in determining the level of road fatalities, underscoring that a 10 percent decrease in gasoline prices leads to a 248 increase in the total number of road fatalities, but with many more injuries. Increases in the female-to-total driver ratio have a greater significant positive impact on road fatalities where a 10 percent increase in this ratio increases road fatalities by 1,008 deaths. Increases in registered vehicles per capita also increase the number of fatalities. Other variables such as alcohol consumption per adult and BAC limits are not as important. Policy implications are also provided. Research limitations/implications The results of this study highlight the importance of gasoline prices in determining the number of road fatalities. This factor can be an effective policy measure by which policymakers can offset increases in fatalities due to further drastic declines in future gasoline prices. But the effects of the gasoline prices in determining the number of road fatalities are not as strong as the media would lead us to believe. The media ignores the impact of other factors on fatalities, which results in an overestimation of the impact of gasoline prices. Originality/value This study uses the panel data of 50 US states and the dynamic panel data model. In addition to gasoline price effects on the road fatalities, this study also considers other factors such as gender, gasoline taxes, per capita disposable personal income, per capita alcohol consumption, BAC limits and number of registered vehicles.

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