This study aims to reveal the impact of zakat distribution on macroeconomic in 5 state In Indonesia, by using ECM analysis. The motivation of the current research lies on the belief of a large number of economists that zakat does not affect macro economy because 2.5 percent is perceived insignificant. This issue leads to a high curiosity about the impact of zakat distribution in Indonesia. This study finds that zakat has a significant and positive relationship with economic growth. The results of the ECM analysis show that the distribution of zakat positively influences on economic growth. The long-run elasticity of zakat variable is positive and significant.
Source: International Journal of Islamic Banking and Finance Research
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