Macroeconomic Determinants of Zakat Institution Efficiency in Malaysia
DOI:
https://doi.org/10.53840/ijiefer293Keywords:
Economic Growth, Macroeconomic Factors, Zakat Institutions, Zakat EfficiencyAbstract
Purpose – This study examines the influence of selected macroeconomic factors namely GDP growth, inflation rate, unemployment rate and gold prices on the efficiency of zakat institutions in Malaysia.
Design/Methodologies/Approach – A quantitative approach is adopted using secondary data from 2020–2024. Panel data regression analysis is employed to assess the relationships between macroeconomic variables and zakat efficiency.
Findings – GDP growth is found to have a significant positive effect on zakat efficiency, while inflation exerts a significant negative effect. Unemployment and gold prices show no statistically significant relationship.
Originality/Value – This study extends the literature by providing empirical evidence on the role of macroeconomic conditions in influencing zakat institution efficiency within the Malaysian context.
Research Limitations/Implication – The findings are constrained by the limited study period and reliance on secondary data. Future research should incorporate longer time horizons and additional variables to enhance robustness.
Practical Implications – The results inform policymakers and zakat administrators on the importance of incorporating macroeconomic considerations into strategic planning and resource allocation.
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