Granger Causality Analysis on Factors that Affect the Performance of Amil Zakat

Abstract

This study aims to prove the existence of a Granger causality relationship between the performance variables of Amil Zakat and Dana Amil. Using data from amil zakat institutions between 2010 and 2021 from 10 amil zakat institutions in Indonesia, we find Amil Fund has Granger causality effect to Performance, but Performance doesn’t have granger causality effect to Amil Funds. The increase in amil funds will increase the total funds collected by the amil zakat institutions in the next period. However, the more total funds collected doesn’t mean increasing the amil funds in the next period. We also tested the simultan effect using two stage lease square regression and we find that Amil Fund and Performance have simultan effects.