Journal of Finance and Islamic Banking
Full Lenght Article
Influence of Cash Waqf on Economic Growth Evidence from Malaysia
Abstract
This paper proposes to look into the connection between Malaysian economic growth and cash waqf. This research makes use of time series data from the World Bank’s development indicators covering the years 2013 to 2019. To analyse both the long-term as well as short-term relationships between Malaysia’s cash waqf and the country’s economic growth, this research used the Autoregressive Distributed Lag (ARDL) model for cointegration and the Error Correction Model (ECM). Furthermore, the data indicates that while cash waqf has a short-term negative impact on economic growth, it possesses a favourable long-term impact from 2013 to 2019. Cash waqf is gradually becoming a tool for improving social well-being, lowering poverty rates and assisting in economic growth in the long run. Hence, the results portray a strong government supporting the importance of strengthening the waqf distribution policy to improve economic growth by raising awareness among financial institutions about the importance of philanthropy in cash waqf management and distribution. The ARDL model for cointegration and the ECM are used to assess both short- and long-run relationships in this research to add to the body of knowledge with regard to economic growth and cash waqf in Malaysia.
Keywords
Declarations
Publisher's Note
Universitas Islam Negeri Raden Mas Said Surakarta remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
References
Ali, N. M., Rahman, M. M., Ahmad, R., & Mahdzan, N. S. A. (2015). Necessity of effective and efficient business model for development of Waqf lands in Malaysia of Waqf lands in Malaysia. Muktamar Waqf Iqlimi II 2015, (August), 351–364. Retrieved from http://www.researchgate.net/publication/280088128_Necessity_of_effective_and_efficient_business_model_for_development_of_Waqf_lands_in_Malaysia
Allah Pitchay, A., Mohd Thas Thaker, M. A., Mydin, A. A., Azhar, Z., & Abdul Latiff, A. R. (2018). Cooperative-waqf model: a proposal to develop idle waqf lands in Malaysia. ISRA International Journal of Islamic Finance, 10(2), 225–236. https://doi.org/10.1108/IJIF-07-2017-0012
Berakon, I., Aji, H. M., & Hafizi, M. R. (2022). Impact of digital Sharia banking systems on cash-waqf among Indonesian Muslim youth. Journal of Islamic Marketing, 13(7), 1551–1573. https://doi.org/10.1108/JIMA-11-2020-0337
Hendriarto, P. (2021). relevance of the national movement of cash waqf for advancing the sharia economy in modern times in Indonesia: a review study. International Journal of Business, Economics & Management, 4(1), 63–69. https://doi.org/10.31295/ijbem.v4n1.875
Iqmal, M., Kamaruddin, H., Masruki, R., & Hanefah, M. M. (2018). Waqf Management Practices: Case Study in a Malaysian Waqf Institution. World Journal of Social Sciences, 8(3), 1–12. Retrieved from https://www.researchgate.net/publication/328133339
Md. Shahedur Rahaman Chowdhury. (2011). Economics of Cash WAQF management in Malaysia: A proposed Cash WAQF model for practitioners and future researchers. African Journal of Business Management, 5(30), 12155–12163. https://doi.org/10.5897/ajbm11.1810
Merlinda, S., Yusida, E., Qurrata, V. A., Seprillina, L., Malang, U. N., Purnamasari, V., & Hussain, N. E. (2018). The Role of Cash Waqf as a Source of Micro Business Financing for Strengthening the Local Economy: A Case Study in Gunung Kawi District, Malang Regency View project The Role of Cash Waqf as a Source of Micro Business Financing for Strengthening the Local . Review of Integrative Business and Economics Research, 10(1), 136. Retrieved from https://www.researchgate.net/publication/350235787
Mohd Thas Thaker, M. A. Bin. (2018). A qualitative inquiry into cash waqf model as a source of financing for micro enterprises. ISRA International Journal of Islamic Finance, 10(1), 19–35. https://doi.org/10.1108/IJIF-07-2017-0013
Mokthar, M. Z. (2016). Perceptions of Universiti Sains Malaysia Muslim Staff on Factors Influencing their Intention to Perform Cash Waqf. Journal of Islamic Studies and Culture, 4(2). https://doi.org/10.15640/jisc.v4n2a11
Nour Aldeen, K., Ratih, I. S., & Sari Pertiwi, R. (2022). Cash waqf from the millennials’ perspective: a case of Indonesia. ISRA International Journal of Islamic Finance, 14(1), 20–37. https://doi.org/10.1108/IJIF-10-2020-0223
Nurrachmi, R. (2012). Implication Of Cash Waqf in The Society. Al-Infaq, Jurnal Ekonomi Islam, 3(2), 150–155.
Rusydiana, A. S., Hidayat, Y., Widiastuti, T., & Rahayu, S. S. (2021). Cash Waqf for Developing Islamic Economy: Case Study in Indonesia. Al-Uqud: Journal of Islamic Economics, 5(1), 43–59. https://doi.org/10.26740/al-uqud.v5n1.p43-59
Saiti, B., Salad, A. J., & Bulut, M. (2019). The Role of Cash Waqf in Poverty Reduction: A Multi-country Case Study. 21–34. https://doi.org/10.1007/978-3-030-10907-3_3
Sanusi, S., & Shafiai, M. H. M. (2015). The management of cash waqf: Toward socioeconomic development of muslims in Malaysia. Jurnal Pengurusan, 43, 3–12. https://doi.org/10.17576/2015-43-01
Sarker, A. A. (2019). Revitalisation of Waqf for Socio-Economic Development, Volume I. In Revitalisation of Waqf for Socio-Economic Development, Volume I. https://doi.org/10.1007/978-3-030-18445-2
Shukor, S. A., Anwar, I. F., Sabri, H., Aziz, S. A., & Ariffin, A. R. M. (2016). Giving behaviour: Who donates cash WAQF? Malaysian Journal of Consumer and Family Economics, 19, 82–94.
Sri Wulandari, N., Rosida, R., Cakhyaneu, A., & Alindawati, N. (2016). Optimisation of Cash Waqf in Developing Creative Industry : An Effort to Create Sharia-creativepreneurs. 15, 933–939. https://doi.org/10.2991/gcbme-16.2016.175
Tanjung, H., & Windiarto, A. (2021). Role of Cash Waqf Linked Sukuk In Economic Development and International Trade. Signifikan: Jurnal Ilmu Ekonomi, 10(2), 275–290. https://doi.org/10.15408/sjie.v10i2.20493
Vika Annisa Qurrata, Ermita Yusida, Nor Ermawati Hussain, Santi Merlinda, Vidya Purnamasari, & Linda Seprillina. (2021). Effectiveness of cash waqf management in improving community welfare: Challenges and opportunities. Review of Integrative Business & Economics Research, 10(1), 342–359. Retrieved from http://buscompress.com/uploads/3/4/9/8/34980536/riber_10-s1_29_u20-086_342-359.pdf
Yayasan Waqaf Malaysia. (2020). Annual Report Yayasan Waqaf Malaysia 2020.
Copyright and permissions
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Bibliographic Information
