Bulletin of Business and Economics (BBE)

ISSN - 2414-1771 (Print)

ISSN - 2409-9368 (Online)


Zakat and Economic Development: Micro and Macro Level Evidence from Pakistan


Authors:

Muhammad Azam, Nasir Iqbal, Muhammad Tayyab

Citation:

Azam, M., Iqbal, N., & Tayyab, M. (2014). Zakat and Economic Development: Micro and Macro Level Evidence from Pakistan. Bulletin of Business and Economics, 3(2), 85-95.

Abstract:

Zakat, as a transfer payment, is an important instrument to achieve social welfare ina society in Islamic ideology. This study attempts to analyze the impact of Zakat on economic development using micro and macro level data for Pakistan. The overall analysis shows that Zakat has a positive impact on economic development in Pakistan. More specifically, micro evidence shows that Zakat significantly enhances the welfare of the households. Macro evidence also highlights that Zakat significantly contributes to economic growth in Pakistan. These findings have important implications for Pakistan.

Keywords:

Zakat, transfer payment, social welfare, economic growth, Pakistan

Jel Code:

Article Type:

Research Article

Pages:

85-95

Publisher:

Research Foundation for Humanity (RFH)


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