Islamic Economics: Concepts and Applications—An Empirical Study of Songkhla Province, Thailand

Sorfina Densumite

doi:10.20414/ujis.v29i2.1619

Sorfina Densumite Prince of Songkla University, Pattani Campus

DOI: https://doi.org/10.20414/ujis.v29i2.1619

Keywords: GDP growth, Islamic economics, Muslim community, zakāt

Abstract

This study aims to contribute to the concept and application of Islamic economics in mainstream economics, particularly in Thailand, as an alternative worldview to promote the welfare of humankind. The study examines the impact of zakāt distribution on growth, as measured by gross provincial product (GPP) per capita, in Songkhla Province, Thailand. An econometric analysis is conducted using various procedures, including unit root tests, cointegration tests, Granger causality tests, correlation tests, and multiplier effect analysis. The study's findings suggest that zakāt distribution is positively and significantly associated with GPP per capita. The Granger causality test indicates that zakāt distribution causes changes in GPP per capita and vice versa, with changes in GPP per capita influencing zakāt distribution. The study also demonstrated that the zakāt distribution multiplier shows a positive impact on growth. Conclusively, this research found that zakāt distribution could boost GPP per capita in the Songkhla province of Thailand in the long run. It is suggested that a national zakāt institute be established in Thailand to provide higher-quality welfare for the Thai population.

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