Title: Impact of ethical social financing on the development of socio-economic status of a developing country like Indonesia

Authors: Akhmad Affandi Mahfudz; Toseef Azid; Rusyda Afifah Ahmad

Addresses: Faculty of Economics and Management Sciences, University of Darussalam Gonto, Indonesia ' Department of Business and Economics, College of Business and Economics, Qassim University, Saudi Arabia ' Faculty of Economics and Management Sciences, University of Darussalam Gontor Indonesia, Indonesia

Abstract: COVID-19 outbreak has many negative impacts on the economy, especially for rural communities. The objective rules explains that if each region has adopted social institutions by establishing social institutions in the form of baitul maal (treasury), mosques (worship place for Muslims), waqf (trust endowment) institutions and so on, then the area can improve the economy of its people. So, in this research to analyse the influence of philanthropic institution program on ethical social funds disbursement as part of developing rural society through its financing as intervening variable. This paper employs SEM using structured questionnaire circulated to 165 baitul maal in East Java Indonesia. This study unveiled the fact that model of ethical social funds disbursement from baitul maal has significantly influenced the development of marginalised areas through philanthropy using qardh hasan (benevolent loan).

Keywords: philanthropy; social funds; poverty alleviation; destitute; socio-economic status; Indonesia.

DOI: 10.1504/IJEED.2024.141941

International Journal of Education Economics and Development, 2024 Vol.15 No.4, pp.431 - 449

Received: 21 Jan 2023
Accepted: 03 Feb 2023
Published online: 03 Oct 2024 *

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