To What Extent Does Waqf Advance Sustainable Economic Growth? Evidence From Indonesia

Nor Nabilla Muhammad; Anniza Citra Prajasari; Izra Berakon

doi:10.21107/dinar.v13i2.35200

To What Extent Does Waqf Advance Sustainable Economic Growth? Evidence From Indonesia

Nor Nabilla Muhammad, Anniza Citra Prajasari, Izra Berakon

Abstract

This study aims to examine the potential factors of Waqf Productiveness in advancing the Islamic economy and supporting the achievement of the SDGs through sustainable and impactful economic development in Indonesia. Researchers highlight three gaps including theoretical, empirical, and methodological gaps, which further encourage researchers to formulate novelties on the role of economic empowerment of the ummah in driving sustainable economic growth. The urgency of conducting a quantitative analysis to identify the key factors of sustainable economic growth through Waqf is emphasized, considering that most previous studies on Waqf issues have been dominated by perception-based analysis. Moreover, this study employs the Panel Data Analysis from 33 provinces in Indonesia for the 2020–2023 period. Robustness test was employed to support strong results. The results show that the National Waqf Index (NWI) and MSMEs can enhance sustainable economic growth both in HDI and EG. Additionally, digital literacy and financial inclusion variables were found to be predictors of sustainable economic growth, rather than moderators. Further, this research contributes to increasing the potential of Waqf within the broader Islamic economic in supporting policy strategy sustainable, long-term economic resilience, and social welfare particularly in Indonesia.

Keywords

Waqf; Sustainability; Economic Growth; Economic Development.

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References

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DOI: https://doi.org/10.21107/dinar.v13i2.35200