Financial Innovation on Zakat Distribution and Economic Growth

The 2nd ICONZ 2018 - Proceedings

Abstract

We investigate that the technological determinants and Islamic finance encouraging to speed up economic growth and poverty alleviation. We find that countries evidence more fintech startup formations when latest technology is readily available, zakat institutions are deep well developed. And also people which are touching with internet subscriptions. Furthermore, the available labor force has a positive impact on this new market segment through economic acceleration. Finally, the more usable fintech in collection and distribution zakat, the faster the development of country.  Overall, the evidence suggests that fintech set off the formation need not be left to chance, but active policies can affect this new market emerge.