Empirical Model of Poverty Alleviation in Islamic Economic Perspective: Evidence from Indonesia

Muhammad Anis* -  Universitas Airlangga, Indonesia
Tika Widiastuti -  Universitas Airlangga, Indonesia
Najim Nur Fauziah -  International Islamic Univeristy Malaysia, Malaysia

Supp. File(s): Data Set
This study aims to examine the model of poverty alleviation by analyzing several aspects that in Islamic economics are considered to have an effect on poverty alleviation. Using a sample of provinces in Indonesia, this study applies to panel data analysis. The novelty of this research is using more variables, including some aspects rarely discussed in previous empirical models. The results of this study indicate a significant negative effect of mandatory and charity transfer variables on the poverty level. Although using different proxies, the results of this study are in line with and confirm previous theories and empirical research regarding the effect of zakat on poverty alleviation. In addition, the variable of increasing income was also found to have a significant effect on poverty alleviation. This provides an overview for the government to be able to optimize the role of zakat and increase income to reduce poverty, for example, by integrating the distribution of ziswaf through the provision of working capital more broadly and integrated towards economic improvement and growth so that it will bring a greater multiplier effect. In addition, the results of this study also provide recommendations for researchers to complement the limitations of this study. The limitation of this study is the lack of proxies in describing aspects that become variables of poverty alleviation in Islam as a whole. Whereas in Islam, poverty and its alleviation are multidimensional things and are not limited to material aspects but also spiritual.

Supplement Files

Keywords : Islamic Economics, Poverty Alleviation, Ziswaf, Economic Growth

  1. Abdullah, N., Derus, A. M., & Al-Malkawi, H. A. N. (2015). The effectiveness of zakat in alleviating poverty and inequalities a measurement using a newly developed technique. Humanomics, 31(3), 314–329. https://doi.org/10.1108/H-02-2014-0016

    Affandi, A., & Astuti, D. P. (2014). Dynamic model of Ibn Khaldun theory on poverty: Empirical analysis on poverty in majority and minority Muslim populations after the financial crisis. Humanomics, 30(2), 136–161. https://doi.org/10.1108/H-05-2012-0010

    Ahmed, H. (2004). Role of Zakah and Awqaf in Poverty Alleviation. Islamic Development Bank Group.

    Al-Hmoud, R. B., & Edwards, J. (2005). Water poverty and private investment in the water and sanitation sector. Water International, 30(3), 350–355. https://doi.org/10.1080/02508060508691875

    Amaliah, D. (2015). Pengaruh Partisipasi Pendidikan Terhadap Persentase Penduduk Miskin. Faktor Jurnal Ilmiah Kependidikan, 2(3), 231–239. https://journal.lppmunindra.ac.id/index.php/Faktor/article/download/595/561

    Anderson, E., d’Orey, M. A. J., Duvendack, M., & Esposito, L. (2018). Does Government Spending Affect Income Poverty? A Meta-regression Analysis. World Development, 103, 60–71. https://doi.org/10.1016/j.worlddev.2017.10.006

    Awan, M. S., Malik, N., Sarwar, H., & Waqas, M. (2011). Impact of Education on Poverty Reduction. International Journal of Academic Research, 3(1), 659–664.https://mpra.ub.uni-muenchen.de/id/eprint/31826

    Ayuniyyah, Q., Pramanik, A. H., Md Saad, N., & Ariffin, M. I. (2022). The impact of zakat in poverty alleviation and income inequality reduction from the perspective of gender in West Java, Indonesia. International Journal of Islamic and Middle Eastern Finance and Management. https://doi.org/10.1108/IMEFM-08-2020-0403

    Badan Amil Zakat Nasional. (2020). Laporan Kinerja Badan Amil Zakat Nasional Tahun 2020.

    Badan Pusat Statistik. (2021). Persentase Penduduk Miskin September 2020 naik menjadi 10,19 persen. Berita Resmi Statistik. https://www.bps.go.id/pressrelease/2021/02/15/1851/persentase-penduduk-miskin-september-2020-naik-menjadi-10-19-persen.html

    Banerjee, R. (2016). Corruption, Norm violation and decay in social capital. Journal of Public Economics, 137, 14–27. https://doi.org/10.1016/j.jpubeco.2016.03.007

    Biltonen, E., & Dalton, J. A. (2003). A Water-Poverty Accounting Framework: Analyzing the Water-Poverty Link. Water International, 28(4), 467–477. https://doi.org/10.1080/02508060308691724

    Burdett, K., Glaeser, E., Merlo, A., Reed, R., Selten, R., Page, F., Wooders, M., & State, P. (2004). Crime and poverty: a search-theoretic approach. International Economic Review, 45(3), 909–938. https://doi.org/https://doi.org/10.1111/j.0020-6598.2004.00291.x

    Daly, A., & Fane, G. (2002). Anti-poverty programs in Indonesia. Bulletin of Indonesian Economic Studies, 38(3), 309–329. https://doi.org/10.1080/00074910215535

    Erlando, A., Riyanto, F. D., & Masakazu, S. (2020). Financial inclusion, economic growth, and poverty alleviation: evidence from eastern Indonesia. Heliyon, 6(10), e05235. https://doi.org/10.1016/j.heliyon.2020.e05235

    Fadly, Inat, F., Iryanto, M., & Quilim, C. A. (2021). Analisis Pengaruh Pembiayaan Bank Syariah, Belanja Pemerintah dan Pertumbuhan Ekonomi terhadap Tingkat Kemiskinan di Kota Ternate. Jurnal Ilmiah Ekonomi Islam, 7(1), 123–129. https://doi.org/10.29040/jiei.v7i1.1858

    Garza-Rodriguez, J., Ayala-Diaz, G. A., Coronado-Saucedo, G. G., Garza-Garza, E. G., & Ovando-Martinez, O. (2021). Determinants of poverty in Mexico: A quantile regression analysis. Economies, 9(2), 1–24. https://doi.org/10.3390/economies9020060

    Gindling, T. H., & Terrell, K. (2010). Minimum wages, globalization, and poverty in honduras. World Development, 38(6), 908–918. https://doi.org/10.1016/j.worlddev.2010.02.013

    Hafandi, A., & Helmy, M. (2021). Creating A Social Justice Trough Zakat And Its Relevant To Poverty Alleviation : A Perspective Of Abul A ’ La Al -Maududi. An-Nisbah: Jurnal Ekonomi Syariah, 08(1), 1–31. https://pdfs.semanticscholar.org/dea8/c7e400f9decdc096bc4a7277337279d0d768.pdf

    Harper, C., Marcus, R., & Moore, K. (2003). Enduring poverty and the conditions of childhood: Lifecourse and intergenerational poverty transmissions. World Development, 31(3), 535–554. https://doi.org/10.1016/S0305-750X(03)00010-X

    Hazra, D. (2020). What does (and does not) affect crime in India? International Journal of Social Economics, 47(4), 503–521. https://doi.org/10.1108/IJSE-03-2019-0206

    Hipsher, S. (2019). Increased equality of opportunity through international tourism. Journal of Global Responsibility, 10(4), 339–354. https://doi.org/10.1108/JGR-04-2019-0045

    Ladi, T., Mahmoudpour, A., & Sharifi, A. (2021). Assessing impacts of the water poverty index components on the human development index in Iran. Habitat International, 113(June), 102375. https://doi.org/10.1016/j.habitatint.2021.102375

    Lu, P., Shelley, M., & Liu, Y. (2020). Government Transfers and Poverty Alleviation among Older Adults in the United States from 2002 to 2014. Social Policy & Society, 1–19. https://doi.org/10.1017/S147474642000041X

    Mai, T., & Mahadevan, R. (2016). A research note on the poverty dynamics and cost of poverty inequality : Case study of Indonesia. Economic Analysis and Policy, 49, 100–107. https://doi.org/10.1016/j.eap.2015.12.003

    Mariyanti, T., & Mahfudz, A. A. (2016). Dynamic circular causation model in poverty alleviation: Empirical evidence from Indonesia. Humanomics, 32(3), 275–299. https://doi.org/10.1108/H-02-2016-0016

    Melati, A. M., & Burhany, D. I. (2021). Pengaruh Belanja Pendidikan, Belanja Kesehatan, dan Belanja Bantuan Sosial terhadap Kemiskinan pada Kabupaten dan Kota di Provinsi JawaBarat. Indonesian Accounting Research Journal, 1(3), 422–430. https://jurnal.polban.ac.id/ojs-3.1.2/iarj/article/view/3013

    Michalek, A., & Jan Vybostok. (2019). Economic Growth, Inequality, and Poverty in EU. Social Indicators Research, 141, 611–630. https://doi.org/https://doi.org/10.1007/s11205-018-1858-7

    Mohammed, M. O., El Amri, M. C., & Bakr, A. (2021). The Role of Islamic Ethical Wealth in Strategically and Technically Supporting ‘No Poverty’-SDGs 1. In Islamic Wealth and the SDGs (pp. 241–256). Palgrave Macmillan. https://doi.org/10.1007/978-3-030-65313-2_12

    Mohseni-cheraghlou, A. (2015). Socio-economic justice and poverty in Nahj Al-Balagha. International Journal of Islamic and Middle Eastern Finance and Management, 8(1), 20–35. https://doi.org/10.1108/IMEFM-01-2014-0014

    Mukherjee, S. (2019). Crime and social deprivation across states in India insights from a panel data discourse on social sustainability. The Impact of Global Terrorism on Economic and Political Development: Afro-Asian Perspectives, 249–265. https://doi.org/10.1108/978-1-78769-919-920191021

    Netoiu, L., & Cârstina, S. (2014). Analysis of the Correlation between Minimum Wage Levels in the Country, Indicators of Social Protection and Poverty Threshold. Procedia Economics and Finance, 8(14), 505–509. https://doi.org/10.1016/s2212-5671(14)00120-8

    Neumark, D. (2015). Reducing Poverty via Minimum Wages , Alternatives. In FRBSF Economic Letter, Vol. 38. https://www.frbsf.org/wp-content/uploads/sites/4/el2015-38.pdf

    Omoniyi, M. B. I. (2014). The Role of Education in Poverty Alleviation and Economic Development: a Theoretical Perspective and Counselling Implications. Mediterranean Journal of Social Sciences, 5(23), 868–872. https://doi.org/10.5901/mjss.2014.v5n23p868

    Palokoto, T., Purwanti, Y., & Mudakir, Y. B. (2020). Analisis Konsekuensi Ekonomi Akibat Kejahatan di Indonesia Analysis of the Economic Consequences of Crime in Indonesia. Jurnal Ekonomi Dan Pembangunan Indonesia, 20(2), 146–159. https://doi.org/10.21002/jepi.v20i2.1176

    Pandey, S., Mohapatra, G., & Arora, R. (2022). Examining the interstate variations and interlinkage between water poverty and multidimensional poverty in India: evidence from household-level data. International Journal of Social Economics. https://doi.org/10.1108/ijse-12-2021-0731

    Prasada, I. Y., Yulhar, T. F. M., & Rosa, T. A. (2020). Determinants of poverty rate in Java Island: Poverty alleviation policy. Jurnal Ekonomi Pembangunan, 18(2), 95–104. https://doi.org/10.29259/jep.v18i2.11664

    Purbasari, L. T., Sukmana, R., & Ratnasari, R. T. (2020). The Effectiveness of Zakat, Infaq, and Shodaqoh in Alleviating Poverty in Indonesia: Using Basic Needs Deficiency Index. Jurnal Ekonomi Syariah Teori Dan Terapan, 7(2), 222. https://doi.org/10.20473/vol7iss20202pp222-233

    Rahman, A., & Siradjuddin. (2020). Islamic Economic Concept in Poverty Alleviation. Journal of Asian Multicultural Research for Economy and Management Study, 1(2), 67–74. https://doi.org/10.47616/jamrems.v1i2.68

    Ridha, M. R., Sinring, B., & Baharuding, D. (2021). Pengaruh Bantuan Sosial dan Pemberdayaan Masyarakat Melalui UMKM terhadap Pengentasan Kemiskinan di Kota Pare-pare. Economos: Jurnal Ekonomi Dan Bisnis, 4(1), 75–81. https://doi.org/10.31850/economos.v4i1.782

    Sadeq, A. M. (1997). Poverty Alleviation: an Islamic Perspective. Humanomics, 13(3), 110–134. https://doi.org/http://dx.doi.org/10.1108/eb018797

    Sari, N. C., & Azhar, Z. (2019). Analisis Kausalitas Kriminalitas, Pendidikan Dan Kemiskinan Di Indonesia. Jurnal Kajian Ekonomi Dan Pembangunan, 1(2), 635. https://doi.org/10.24036/jkep.v1i2.6288

    Senadjki, A., & Sulaiman, J. (2015). An empirical study on the influence of Islamic values in poverty alleviation. Journal of Islamic Accounting and Business Research2, 6(2), 19–21. https://doi.org/10.1108/JIABR-05-2012-0027

    Shaikh, S. A. (2016). Zakat Collectible in OIC Countries for Poverty Alleviation : A Primer on Empirical Estimation. International Journal of Zakat, 1(1), 17–35. https://doi.org/https://doi.org/10.37706/ijaz.v1i1

    Situmorang, M. H. S., & Susanti, Y. (2020). Pemodelan Indeks Keparahan Kemiskinan di Indonesia Menggunakan Analisis Regresi Robust. Indonesian Journal of Applied Statistics, 3(1), 51. https://doi.org/10.13057/ijas.v3i1.40838

    Soleh, A. (2015). Pertumbuhan Ekonomi Dan Kemiskinan Di Indonesia. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi Dan Bisnis, 2(2), 197–209. https://doi.org/10.37676/ekombis.v2i2.15

    Sotomayor, O. J. (2021). Can the minimum wage reduce poverty and inequality in the developing world? Evidence from Brazil. World Development, 138, 105182. https://doi.org/10.1016/j.worlddev.2020.105182

    Sumardjoko, I., & Akhmadi, M. H. (2019). Pengembangan Infrastruktur Konektifitas Sebagai Daya Ungkit Ekonomi Dan Pemangkas Kemiskinan Jawa Timur. Jurnal Manajemen Keuangan Publik, 3(1), 22–31. https://doi.org/10.31092/jmkp.v3i1.506

    Tilak, J. B. (2010). Higher Education, Poverty, and Development. Higher Education Review, 42(4), 23–45. https://eric.ed.gov/?id=EJ877248

    Widarjono. (2013). Ekonometrika Pengantar dan Aplikasi. Ekonisia Fakultas Ekonomi UII.

    Wu, H., Ding, S., & Wan, G. (2015). Income inequality and rural poverty in China: Focusing on the role of government transfer payments. China Agricultural Economic Review, 7(1), 65–85. https://doi.org/10.1108/CAER-01-2014-0005

    Yao, S., Zhang, Z., & Hanmer, L. (2004). Growing inequality and poverty in China. China Economic Review, 15(2), 145–163. https://doi.org/10.1016/j.chieco.2003.09.002

Open Access Copyright (c) 2022 Muhammad Anis, Tika Widiastuti, Najim Nur Fauziah
Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

FITRAH: Jurnal Kajian Ilmu-ilmu Keislaman
Published by Lembaga Penelitian dan Pengabdian Masyarakat
UIN Syekh Ali Hasan Ahmad Addary Padangsidimpuan, Indonesia
Jl. T. Rizal Nurdin Km. 4,5 Sihitang, Kota Padang Sidempuan
Phone: 0634-22080
Website: http://jurnal.uinsyahada.ac.id/index.php/F/
Email: fitrah@uinsyahada.ac.id