scholarly journals Financial Innovation on Zakat Distribution and Economic Growth

Author(s):  
Ummu Salma Al Azizah ◽  
Muhammad Choirin

We investigate that the technological determinants and Islamic finance encouraging to speed up economic growth and poverty alleviation. We find that countries evidence more fintech startup formations when latest technology is readily available, zakat institutions are deep well developed. And also people which are touching with internet subscriptions. Furthermore, the available labor force has a positive impact on this new market segment through economic acceleration. Finally, the more usable fintech in collection and distribution zakat, the faster the development of country.  Overall, the evidence suggests that fintech set off the formation need not be left to chance, but active policies can affect this new market emerge.

2021 ◽  
Author(s):  
Debi Prasad Bal ◽  
Sujit Kumar Patra ◽  
Seba Mohanty

Abstract This study examine the effects of electricity consumption from different sectors such as agricultural, commercial, domestic, Industrial (HV), Industrial (LV-MV) and Miscellaneous sector on economic growth over the period of 1981-2019 in case of India. We used SVAR framework and concluded that the consumption of electricity from agriculture sector has a negative impact on economic growth. Whereas, the Industrial (HV and MV-LV) and commercial electricity consumption have positive impact on economic growth. Similarly, electricity consumption by the domestic sector has less positive effect on economic growth. Further, we computed the total factor productivity growth (TFP) by using DEA method and show the effects of sector wise electricity consumption on TFP as the robustness of our analysis. We obtain similar kind of results. From the policy perceptive, the study suggests that government must speed up the construction of a power grid to improve the availability of electricity for achieving higher rate of economic growth.


2016 ◽  
Vol 3 (1) ◽  
pp. 046
Author(s):  
Ahmad Syarif

This study aims to prove and analyze the effect of export growth on economic growth in the ASEAN countries. Using annual data from 2004 to 2014, the empirical result shows that export growth is significant and gives positive impact on the economic growth in ASEAN. However, investment and labor-force are less to affect the economic growth in ASEAN. This study also provides strong evidence that supports the hypothesis of export-led growth as described by Nurkse (Moon, 1997). Export-led growth is an economic strategy that is also used by Islamic countries in ASEAN. Export-led growth has two important reasons, it can generate profits and allow countries to balance their finances and the export growth can lead to greater productivity.  This is consistent with the macro theory assumes that exports are injection to the economy (McCombie et al, 1994).


1970 ◽  
Vol 4 (1) ◽  
pp. 41-50
Author(s):  
A. Shanthi ◽  
M. Dhanabhakyam

Poverty is one of the conspicuous features of the developing economies in Africa. It is more sever in Eritrea where the size of its economy is small, significant economic growth and transformation may take place if Eritrea exploits all opportunities for export of goods and services and is open to foreign investment and can curtail the rampant poverty. No economy can develop without the right mix of educated, experienced and skilled labor.  Skill itself isn’t adequate without the right attitude, hope and enthusiasm among the labor force. This indicates that there are other factors which affect poverty of a household in conjunction with education. There is a need for providing complementary factors along side with education so as to alleviate poverty. These results suggest labour market policies as potential instruments for tackling poverty in Eritrea. It is possible that because of the war situation and aging population most of those who are poor and unemployed may turn out to be non employable. 


2021 ◽  
Vol 18 (4) ◽  
pp. 203-212
Author(s):  
Yuliia Shapoval

The intrinsic property of modern economic development is financial deepening in the light of incremental spearheading financial innovation opportunities. The paper deals with the relationship between financial depth, financial innovation, and economic growth among 22 OECD economies over 2007–2018 by applying pooled OLS and fixed effect panel data regression analysis. The purpose of the paper is to empirically test whether the economic growth depends on financial depth, financial innovation, and institutional environment (Worldwide Governance Indicators). The findings shed light on the recent discussion on the pros and cons of financial innovation. The estimation results show that while financial depth is a strong predictor of economic growth across high- and upper-middle-income economies, financial innovation is a slightly weaker predictor. Despite the identified positive impact of financial innovation on economic growth, it is asserted that the negative effect of financial depth may indicate oversaturated financial market in developed countries. Сonsistent with the general notion that the institutional framework promotes the capacity of the financial sector for financial innovations implementation, this paper states that financial depth and financial innovations are better prerequisites of economic growth than institutional development. AcknowledgmentThe paper was funded as a part of the “Relationship between financial depth and economic growth in Ukraine” research project (No. 0121U110766), conducted in the State Institution “Institute for Economics and Forecasting of the NAS of Ukraine”.


2017 ◽  
Vol 6 (2) ◽  
pp. 119
Author(s):  
Thesya Yulianca ◽  
Sri Ulfa Sentosa ◽  
Selli Nelonda

This study aims to determine and analyze the influence between monetary variables consisting of foreign investment and inflation on economic growth, and the influence of non-monetary variables consisting of total labor force and economic growth. The type of this research is descriptive research, where the data used is the time series data from 1984 to 2015 obtained from the World Bank and Central Bureau of Statistics (BPS) website, which is analyzed by Ordinary Least Square (OLS) method. The results of this study indicate that the monetary variables of foreign investment have a positive and significant impact on economic growth in Indonesia and inflation has a negative and significant effect on economic growth in Indonesia, while the non-monetary variable is the total labor force has an insignificant and positive effect on economic growth in Indonesia and Government spending has a significant and positive impact on economic growth in Indonesia.


2012 ◽  
Vol 2 (1) ◽  
Author(s):  
Saliman

The economic growth of Indonesian before the year 1997 was considerably rapid and able to bring Indonesia obtaining a notation as one of Asian tigers. The economic growth brought positive impact to the matters pertaining to manpower of Indonesia. In 1997 the economic crises had befallen on Indonesia, the economic condition of Indonesia destroyed, business and industrial world were collapsed, signed by the bankruptcy of several companies. Even, there were some companies moved abroad, seeking new countries that had lower costs of production as home base. The impact of the crisis was many labor force lost their employment. The severance of working relation (PHK) was undertaken for the sake of efficiency so that the production could be run. On the other side, new job seekers emerged to compete in obtaining work field. The accumulation of the severance of working relation (PHK) and new labor force results in the increasing number of unemployment. Meanwhile the absorption power of work field was considerable limited due to the lack of opening new business.Ironically, there were various job vacancies unoccupied. The vacancies were still unoccupied since many job seekers graduating from Indonesian educational institution lacked expertise, skills and professionalism demanded. The educational institution had merely been able to pass unprepared labor force. Consequently, many educated unemployed could not be absorbed in field of work. There shall be many potential negative impacts due to the educated unemployment. Therefore, it necessitated real efforts in educational world to prepare its graduates so that they would be absorbed in work field, for example by the reevaluation of curriculum substance. The curriculum should be able to provide real experience for students. The entrepreneurship as exploratory subject should be taught since Senior High School. Furthermore, the apprentice program needed to be formulated by involving world of business and industry so that the implementation would give contribution significantly to the preparation process of labor force.


2021 ◽  
Vol 13 (16) ◽  
pp. 8962
Author(s):  
Khurram Shehzad ◽  
Umer Zaman ◽  
Ana Ercília José ◽  
Emrah Koçak ◽  
Paulo Ferreira

The Belt and Road Initiative removes regional barriers and brings communities closer together. In addition, ICT and financial innovation have helped transform the world into a big village and promoted economic growth. The study assessed the dynamic impact of ICT, economic globalization, and financial innovation on China’s economic growth. The study used quarterly data from 2000 to 2019 and used the ARDL model to determine long-term and short-term consequences. The results of the study show that ICT has a positive affiliation with economic growth in China. In addition, financial innovation has also shown a direct impact on economic growth. The study shows that China’s One Belt One Road project (economic globalization) has a great positive impact on its GDP. The consequences of the causality test discovered the significant unidirectional causality running from ICT and economic globalization (ECGI) to GDP. The study recommends mandatory policies related to ICT, financial innovation, and economic globalization to achieve long-term and sustainable development in China.


2014 ◽  
Vol 10 (2) ◽  
Author(s):  
Akhtiar Ali ◽  

Purpose: FDI is one of the very eminent factors of world economy. It especially plays an effective role in developing countries’ economic growth, for that reasons developing economies struggle a lot to invite FDI. The previous researches provide support that FDI has a positive impact on growth of an economy. In this study the role of FDI along with other explanatory variables like gross capital formation, labor force participation and public spending against the economic growth. Methodology/Sampling: The variables supplemented into the model are based on well-established and long-standing economic theory, tested under the standard OLS regression. The data were referred from United Nation Conference for Trade and Development (UNCTAD) and State Bank of Pakistan FDI database. Time period for this is from 1980 to 2012. All in all32years samples were taken for study in this research. Findings: The main conclusions drawn are that in the case of Pakistan, FDI and Labor force participation is found to be positively associated with economic growth. Practical Implications: This study is going to help policymakers to take active measures and formulate strategies that will enhance economic growth in the country.


2020 ◽  
Vol 12 (1) ◽  
pp. 347 ◽  
Author(s):  
Ștefan Cristian Gherghina ◽  
Mihai Alexandru Botezatu ◽  
Alexandra Hosszu ◽  
Liliana Nicoleta Simionescu

Small and medium-sized enterprises (SMEs) are crucial for local economic development, playing a noteworthy role in job creation, poverty alleviation and economic growth, but they encounter many funding barriers. The purpose of the current paper is to investigate the impact of investments and innovation on territorial economic growth, as measured by turnover, for Romanian active enterprises, especially SMEs, over the period 2009–2017. By estimating several log–log linear regressions, the quantitative outcomes provide support for a positive influence of investments on turnover. The association was confirmed both for all active enterprises at the national level, as well as for micro, small, middle-sized and big companies. As regards expenditures on innovation, a positive impact on turnover was acknowledged for all enterprises and particularly for big companies, but there was an absence of any statistically significant relation in the case of SMEs. The impact of firm size on turnover was positive for all active enterprises at the national level, along with active micro-units. Also, the estimation results show a positive impact of the number of active micro-units on territorial economic growth. The empirical findings are relevant to managers and policymakers in order to stimulate, encourage and offer support to SMEs’ development through their strategies.


2020 ◽  
Vol 6 (3) ◽  
pp. 421
Author(s):  
SIti Latifah

Indonesia has enormous potential in developing Islamic finance because Indonesia has the largest number of Muslims in the world and high economic growth. The issuance of State Sharia Securities (sukuk) has become the main financing instrument. The presence of sukuk further strengthens the government's ability to finance the budget deficit. The government has many choices in determining the combination of its financing instruments. The government can keep debt costs to a minimum. This study aims to determine 1) the development of sukuk in Indonesia and 2) the role of sukuk in Indonesia's economic growth. This research uses qualitative methods and library research approach. Researchers use secondary data, namely data sourced from existing literature or references. The results of this study are 1) The Indonesian government has issued Retail Sukuk (SR), namely SR 001 - SR 013. The issuance of State Sukuk from year to year continues to increase, in accordance with developments and strategies applied in the APBN. 2) The role of State Sukuk has a very positive impact, such as financing project development, encouraging development of the Islamic financial market, creating branch marks in the Islamic financial market, developing alternative investment instruments, and utilizing public funds.


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