Maqashid Sharia as a Pillar of Inclusive Development: Moderation in Economic Growth Towards Poverty

Dedi Mardianto, Jawziyah Khaerullah, Samihah Ulvah, Karmila Karmila

Abstract


This study examines the moderating role of Maqashid Sharia in the relationship between economic growth and poverty in selected OIC countries in Asia. It focuses on three dimensions: education (Hifz al-‘Aql), health (Hifz al-Nafs), and distributive justice (Hifz al-Mal). The sample includes Bangladesh, Indonesia, Pakistan, and Uzbekistan over the period 2014–2023. Panel data were analyzed using the Random Effect Model. The findings reveal that economic growth has a negative but statistically insignificant effect on poverty, indicating that growth has not been sufficiently inclusive. Although higher growth is associated with declining poverty, the magnitude of the effect is weak and unevenly distributed among low-income groups. Education, health, and distributive justice significantly reduce poverty directly. However, these variables do not significantly strengthen the impact of growth on poverty reduction. This reflects the limited relevance of education to labor market demands, the predominantly long-term effects of health improvements, and short-term efficiency–equity trade-offs in redistribution policies. The study underscores the need to promote inclusive growth through labor-oriented education reform, strengthened health services, and optimization of zakat and waqf instruments. Limitations include the small country sample, restricted Maqashid dimensions, and limited institutional coverage.

Keywords


Poverty; Maqashid Sharia; Economic Growth; Inclusive development

Full Text:

PDF

References


Aggarwal, S. C. (2022). Inequality and Inclusive Development: Evidence from Selected Indian States. Indian Journal of Human Development, 16(1), 55–76.

Agussalim, A., Nursini, N., Suhab, S., Kurniawan, R., Samir, S., & Tawakkal, T. (2024). The Path to Poverty Reduction : How Do Economic Growth and Fiscal Policy Influence Poverty Through Inequality in Indonesia ? Economic, 12(316), 1–17.

Aiken, L. S., West, S. G., & Reno, R. R. (1991). Multiple regression: Testing and interpreting interactions. sage.

Aini, S. N., & Nugroho, R. yuwono yudo. (2023). The Influence of Economic Growth, Education, Unemployment, and Income Inequality on Poverty in East Java Province. Buletin Ekonomika Pembangunan, 4(1), 20–36.

Aiyar, S., & Ebeke, C. (2020). Inequality of opportunity, inequality of income and economic growth. World Development, 136, 105115.

Aiyemo, B. (2024). Re‐evaluating Africa’s growth, poverty and inequality nexus. Review of Development Economics, 28(4), 1446–1474.

Al-Razi, M. F., Madjid, A., & Khalil, A. (2024). Reconstructing the Islamic education paradigm in Indonesia. EDUKASI: Jurnal Penelitian Pendidikan Agama Dan Keagamaan, 22(2), 294–310.

Al-Roubaie, A., & Sarea, A. M. (2020). Rethinking economic development in muslim societies in the context of the Fourth Industrial Revolution. The International Conference on Artificial Intelligence and Computer Vision, 683–695.

Alam, A. A. M. U., Arsyad, A., Pamungkas, C. A., Setiawan, D., Hidayat, R., Aditya, I., & Ar-raasyid, I. (2024). Implementation of Islamic Economic Principles in Wise Family Financial Management, Basic Principles of Islamic Economics for Individuals. It is stated that the personal principle. The importance of Islamic economic principles lies in its ability to provide. Journal Of Economics and Busines, 2(1), 34–42.

Alfian, R. H., Sandriya, P. A., Adrian, R. F., Backtiar, M., & Suharyat, Y. (2023). Pandangan Islam Tentang Kesejahteraan Hidup Ekonomis. Student Scientific Creativity Journal, 1(3), 349–369. https://doi.org/10.55606/sscj-amik.v1i3.1983

Andi, F. (2023). The Role of Education as an Effort to Alleviate Poverty in the East Oku Community. Utility: Jurnal Ilmiah Pendidikan Dan Ekonomi, x(x), 13–24.

Anis, M., Widiastuti, T., & Fauziah, N. N. (2022). Empirical Model of Poverty Alleviation in Islamic Economic Perspective: Evidence from Indonesia. FITRAH: Jurnal Kajian Ilmu-Ilmu Keislaman, 8(2), 277–294.

Anisa, L. N. (2024). Maqashid Sharia in Economics. COMMODITY: Jurnal Perbankan Dan Keuangan Islam, 03(2), 75–116.

Apouey, B. H. (2013). Health policies and the relationships between socioeconomic status, access to health care, and health. Israel Journal of Health Policy Research, 2(1), 50.

Aqeel, M., Shafique, S., Raiz, F., & Shah, S. A. A. (2022). Education, poverty and economic growth in Pakistan. Journal of Public Value and Administrative Insight, 5(1), 199–207.

Arofah, F. M., & Sishadiyati. (2022). The Role of Human Development Index (HDI) Mediating the Influence of Economic Growth on Poverty Levels in Jember Regency in 2010–2020. Oikos: Jurnal Kajian Pendidikan Ekonomi Dan Ilmu Ekonomi, VI(2), 168–178.

Ayu Setyo Rini, & Sugiharti, L. (2016). Determining Factors Of Poverty In Indonesia : Household. JIET (Jurnal Ilmu Ekonomi Terapan, 1(2), 80–95. https://doi.org/10.20473/jiet.v1i2.3252

Badeges, A. M., Rahman, A. A., Biancone, P., & Calandra, D. (2024). Integrating Islamic Economic Principles Into Social Health Insurance : Insights From The Indonesian Experience. JurnalSyariah, 3(3), 425–465.

Baltagi, B. H. (2008). Econometric analysis of panel data (Vol. 4). Springer.

Bangura, Y. (2015). Politics of Growth and Redistribution in a Democratic Context. In Developmental Pathways to Poverty Reduction (pp. 122–148). Springer.

Bank, W. (2023). World Development Indicators. The World Bank. https://databank.worldbank.org/source/world-development-indicators

Bank, W. (2024). Poverty and Shared Prosperity 2024: Expanding Opportunities for All. The World Bank. https://www.worldbank.org/

Becker, G. S. (1975). Human capital: A theoretical and empirical analysis. National Bureau of Economic Research.

Berg, A., Ostry, J. D., Tsangarides, C. G., & Yakhshilikov, Y. (2018). Redistribution, inequality, and growth: new evidence. Journal of Economic Growth, 23(3), 259–305.

Berggren, N., & Bjørnskov, C. (2024). Institutions as predictors of government discrimination. Kyklos, 77(3), 642–663.

Bhat, A. M. (2023). Maqasid Al-Shari’ah Is a Divine Shield of Islamic Policy. Journal of Islamic Thought and Philosophy, 2(2), 128–150.

Bloom, D. E., Canning, D., Kotschy, R., Prettner, K., & Schünemann, J. (2024). Health and economic growth: reconciling the micro and macro evidence. World Development, 178, 106575.

Bostanli, L. (2023). Pro-poor growth: Concept, challenges, and policy implications in global economic development. Annals of Social Sciences & Management Studies, 9(1), 1–11.

Bourguignon, F. (2015). The globalization of inequality. Princeton University Press.

Breunig, R., & Majeed, O. (2020). Inequality, poverty and economic growth. International Economics, 161, 83–99.

Campano, F., & Salvatore, D. (2007). Economic development and income distribution. Journal of Policy Modeling, 29(4), 553–566.

Chapra, M. U. (2008). Vision of Development in the Light of Maqāsid Al-Sharī ‘ ah.

Chapra, M. U., Khan, S., & Al Shaikh-Ali, A. (2008). The Islamic Vision of Development in the Light of Maqasid Al-Shariah (Occasional Paper). International Institute of Islamic Thought (IIIT).

Costa-Font, J., Hernandez-Quevedo, C., & Sato, A. (2018). A health ‘Kuznets’ curve’? Cross-sectional and longitudinal evidence on concentration indices’. Social Indicators Research, 136(2), 439–452.

Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.

Cuesta, J., Negre, M., Revenga, A., & Silva-Jauregui, C. (2020). Is it really possible for countries to simultaneously grow and reduce poverty and inequality? Going beyond global narratives. Oxford Development Studies, 48(3), 256–270.

Deaton, A. (1985). Panel data from time series of cross-sections. Journal of Econometrics, 30(1–2), 109–126.

Diallo, A. T., & Gundogdu, A. S. (2021). Economic empowerment, zakat, waqf, and social infrastructure. In Sustainable Development and Infrastructure: An Islamic Finance Perspective (pp. 77–93). Springer.

Donaldson, J. A. (2008). Growth is good for whom, when, how? Economic growth and poverty reduction in exceptional cases. World Development, 36(11), 2127–2143.

Draissi, Z., & Rong, Y. (2023). Estimating the determinants and extent of Morocco’s education and skill mismatch through the STEP survey. Sage Open, 13(2), 21582440231181324.

Dusuki, A. W., & Abdullah, N. I. (2024). Maqasid al-Shariah, Maslahah, and Corporate Social Responsibility (2007). American Journal of Islam and Society, 41(1), 10–35.

Erokhin, V., Tianming, G., & Andrei, J. V. (2023). Foundations of Economic Development. In Contemporary Macroeconomics: New Global Disorder (pp. 529–578). Springer.

Fatoni, A., Herman, S., & Abdullah, A. (2019). Ibn Khaldun model on poverty: The case of organization of islamic conference (OIC) countries. Journal of Islamic Monetary Economics and Finance, 5(2), 341–366.

Feniser, C., Sadeh, A., Stan, O. P., Radu, C. F., Constantinescu-Dobra, A., Maier, V., & Popa, I. D. (2022). The Impact Of Education On Economic Development. ICERI2022 Proceedings, 8053–8059.

Firdaus, M. A. (2018). MAQASHID AL-SYARI’AH: Study of the Benefits of Education in Konteks UN Sustainable Development Goals. JRTIE: Journal of Research and Thought of Islamic Education, 1(1), 73–95.

Francis, D. L., Dumka, N., Kotwal, A., & PK, D. (2023). Why should we invest in health? Evidence from the lens of second-order benefits of health. Journal of Global Health Reports, 7.

Fumagalli, E., Pintor, M. P., & Suhrcke, M. (2024). The impact of health on economic growth: A narrative literature review. Health Policy, 143, 105039.

Gehringer, A., & Kowalski, S. (2024). From Economic Welfare Through a Broader Well-being to Sustainability. In Mapping Sustainability Measurement: A Review of the Approaches, Methods, and Literature (pp. 7–14). Springer.

Ghatak, A. (2010). Health, labour supply and wages: A critical review of literature. The Indian Economic Journal, 57(4), 118–143.

Ghazal, R., & Zulkhibri, M. (2019). Islamic inclusive growth index (i-IGI): Measurement and determinants. In Towards a Maqāṣid al-Sharīʿah Index of Socio-Economic Development: Theory and Application (pp. 285–309). Springer.

Grossman, M. (1972). On the concept of health capital and the demand for health. Journal of Political Economy, 80(2), 223–255.

Gründler, K., & Scheuermeyer, P. (2018). Growth effects of inequality and redistribution: What are the transmission channels? Journal of Macroeconomics, 55, 293–313.

Gujarati, D. N., & Porter, D. C. (2009). Basic econometrics. McGraw-hill.

Gunawan, D. (2024). Sharia and Economic Equity: An Empirical Study of Income Inequality in the Organization of Islamic Cooperation. Journal International Economic Sharia, 1(2), 60–74.

Ha-Huy, T., & Tran, N. T. (2020). A simple characterisation for sustained growth. Journal of Mathematical Economics, 91, 141–147.

Haidar, A., & Rachmad, D. (2025). The Intersection of Human Development and Poverty: An Analysis of HDI and I-HDI in Yogyakarta based on Maqāşid Syarī’ah. Fikri : Jurnal Kajian Agama, Sosial Dan Budaya, 9(2), 328–352. https://doi.org/10.25217/jf.v9i2.5163

Hamit-Haggar, M., & Souare, M. (2016). Productivity growth, poverty reduction and income inequality: New empirical evidence. North American Productivity Workshop, 229–254.

Hanushek, E. A., & Woessmann, L. (2020). Education, knowledge capital, and economic growth. The Economics of Education, 171–182.

Hasan, Z. (2020). Distributive Justice: Foundation and Measures. In Leading Issues in Islamic Economics and Finance: Critical Evaluations (pp. 121–149). Springer.

Heintz, J. (2015). Employment, economic development, and poverty reduction. In Developmental pathways to poverty reduction (pp. 30–54). Springer.

Hermawan, A. A., & Bahjatulloh, Q. M. (2022). The Influence of Gross Regional Domestic Product (GRDP), Education and Unemployment on Poverty Levels with Zakat as a Moderating Variable in Indonesia 2016-2020. El-Amwal: Jurnal Ekonomi Dan Keuangan Syariah, 5(1), 1–16.

Herwanti, T., & Irwan, M. (2013). Human Resource Quality from an Islamic Economic Perspective in West Nusa Tenggara. Ekuitas: Jurnal Ekonomi Dan Keuangan, 17(2), 131–154.

Hidayat, M., & Karimi, S. (2020). Inequality, Economic Growth, and Redistribution; Literature Review. Jurnal Akuntansi & Ekonomika, 10(1), 79–88.

Hirvilammi, T., & Koch, M. (2020). Sustainable welfare beyond growth. In Sustainability (Vol. 12, Issue 5, p. 1824). MDPI.

Huber, E., Gunderson, J., & Stephens, J. D. (2020). Private education and inequality in the knowledge economy. Policy and Society, 39(2), 171–188.

Istiqomah, & Floresti, D. A. (2024). Economic Growth And Poverty: The Moderating Effect Of Income Inequality. Trikonomika, 23(1), 11–18.

Jayadevan, C. M. (2021). Impacts of health on economic growth: evidence from structural equation modelling. Asia-Pacific Journal of Regional Science, 5(2), 513–522.

Johnson, L., & Eccleston, R. (2023). Interrogating inclusive growth: Implications for conceptualisation, measurement and policy practice. Australian Economic Papers, 62(2), 362–376.

Junaedi, D., Arsyad, M. R., & Romli, M. (2022). Maslaha Index as an Alternative’s Perfomance Indicator of National Development. Khidmatussifa: Journal of Islamic Studies, 1(1), 75–84.

Kang, J. (2015). Interrelation between growth and inequality. Asian Development Bank Economics Working Paper Series, 447.

Karimullah, S. S. (2023). Exploration of Maqasid al-Shariah concepts in the development of Islamic economic policies. Mu’amalah: Jurnal Hukum Ekonomi Syariah, 2(2), 153–172.

Khalifa, S. (2022). Distributive Justice, Democracy and Growth. Journal of Income Distribution®.

Kochhar, R. (2020). A global middle class is more promise than reality. In The middle class in world society (pp. 15–48). Routledge India.

Lamıdo, A. A. (2016). Maqasid al-Shari’ah as a framework for economic development theorization. Uluslararası İslam Ekonomisi ve Finansı Araştırmaları Dergisi, 2(1), 27–49.

Liu, Q., & Vasnev, A. L. (2019). A combination method for averaging OLS and GLS estimators. Econometrics, 7(3), 38.

Liu, Y., & Gastwirth, J. L. (2020). On the capacity of the Gini index to represent income distributions. Metron, 78(1), 61–69.

Maulana, L., Mumtahaen, I., Nugraha, A. A. W., & Ramdhani, A. (2024). Implementation of Islamic economic principles in sustainable development policies. Jurnal Ekonomi Dan Bisnis, 4(2), 213–218.

Michael, P. (2025). Economic Development ELEVENTHEDITION.

Mkrtchyan, T., & Navasardyan, M. (2023). Assessing Economic Growth Quality. International Journal of Professional Business Review, 8(7), 1–26.

Moges, A. G. (2013). Economic growth, inequality and poverty in developing countries: policy issues and challenges. International Journal of Economic Policy Studies, 8(1), 41–66.

Mohammed, M. O., Razak, D. A., & Taib, F. M. (2008). The performance measures of Islamic banking based on the maqasid framework. IIUM International Accounting Conference (INTAC IV), 1967, 1–17.

Muhit, M., Mariana, R., & Athoillah, M. A. (2023). Distributive Justice Perspective of Sharia Economic Law in Indonesia. Apollo: Journal of Tourism and Business, 1(3), 97–103.

Mukson, M., & Subhi, I. (2025). Integration of Maqashid Syariah in Sustainable Islamic Economic Development. JPES: Jurnal Perbankan Dan Ekonomi Syariah, 1(2), 72–82.

Muqtada, M., & Khatun, F. (2020). The quest for an inclusive growth strategy. In Quest for Inclusive Growth in Bangladesh: an Employment-Focused Strategy (pp. 23–58). Springer.

Murniati, N., Rimbani, R. M., & Mawaddah, U. (2021). The Success of the Health Subsidy Program in Allocating Health Costs for Poor Families (A Study of Contribution Assistance Recipients in Ngamprah District, West Bandung Regency). Jurnal Riset Ilmu Ekonomi, 1(1), 12–21.

Musaddad, H. A., Najmuddin, I. N., Marzuki, I. N., & Idris, J. (2025). Harnessing Maqāṣid Al-Sharīʿah for Poverty Alleviation and Achieving Sustainable Development Goals: A Systematic Literature Review. International Journal of Islamic Finance and Sustainable Development, 17(2), 129–149. https://doi.org/10.55188/ijifsd.v17i2.937

Nasir, M. A. (2021). Ethical Dimension of Maqasid al-Shari’ah and Its Implication to Human Capital Development. International Journal of Islamic Studies and Humanities, 4(1), 20.

Nor, N. A. M., & Sari, N. M. (2022). A study of Muslims in klang valley on the cash waqf for public health expenditure. AZKA International Journal of Zakat & Social Finance, 100–123.

Olinto, P., Lara Ibarra, G., & Saavedra-Chanduvi, J. (2014). Accelerating poverty reduction in a less poor world: The roles of growth and inequality. World Bank Policy Research Working Paper, 6855.

Öztürk, G. (2023). Workforce Health and Economic Growth: Exploring the Dynamics for More Than Half a Century. Pamukkale Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 56, 139–163.

Padela, A. I. (2018). The Essential Dimensions of Health According to the Maqasid al-Shariʿah Frameworks of Abu Ishaq al-Shatibi and Jamal-al-Din-ʿAtiyah. IIUM Medical Journal Malaysia, 17(1).

Patterson, A. C. (2023). Is economic growth good for population health? A critical review. Canadian Studies in Population, 50(1), 1.

Putri, R. M., & Mintaroem, K. (2020). Determinants of the Islamic Human Development Index (IHDI) in East Java Province 2001-2016. Jurnal Ekonomi Syariah Teori Dan Terapan, 6(7), 1410. https://doi.org/10.20473/vol6iss20197pp1410-1420

Qi, Z., Wang, B., & Wang, Y. (2025). Income inequality and economic growth. American Journal of Economics and Sociology, 84(2), 387–426.

Rahmadhani, R., & S., A. (2018). Analysis of the Influence of Education and Health Investment on Economic Growth in the Districts of West Sumatra Province. Jurnal Ecogen, 1(2), 327. https://doi.org/10.24036/jmpe.v1i2.4753

Ravallion, M. (2020). On the origins of the idea of ending poverty. National Bureau of Economic Research.

Ravallion, M. (2022). Growth elasticities of poverty reduction. National bureau of economic research.

Rehman, H. A., Hasan, H., & Muhammad, M. (2022). Socioeconomic Development Based on Maqas ¯.id al-Shar¯ı‘ah: The Case of Selected OIC Countries. Journal of Islamic Business and Management (JIBM), 12(02), 142–157. https://doi.org/10.26501/jibm/2022.1202-002

Safarova, N. (2021). Cross-Country Analysis of the Impact of Education on Poverty Reduction. Конференции.

Satiadharmanto, D. F., Aulia, N. S., & Fastmadhi, G. J. (2024). Sharia-Based Green Economic Transformation: A Maqasid Framework for Sustainable Social and Environmental Development Through Industrial Policy and Innovation. The Asian Journal of Professional & Business Studies, 5(2).

Shaikh, S. A. A. (2017). Developing an index of socio-economic development consistent with maqasid Al-Shari’ah. Journal of King Abdul Aziz University, Islamic Economics, 30(1), 117–129.

Sherwood, R. M. (2019). Intellectual property and economic development. Routledge.

Shirazi, N., Md Isa, M., Abdul Kareem, M. A., & Eskandar Shah, M. E. S. (2023). Islamic Human Development Index (i-HDI) and Poverty Reduction in OIC Countries. Journal of King Abdulaziz University: Islamic Economics, 36(1), 71–90.

Siddiqui, S. A. (2024). Islam, poverty, and philanthropy in the global south. In Religion and poverty (pp. 114–141). Routledge.

Siregar, B. (2019). Direct and indirect effects of investment on community welfare. Investment Management & Financial Innovations, 16(3), 206.

Škare, M., & Družeta, R. P. (2016). Poverty and economic growth: a review. Technological and Economic Development of Economy, 22(1), 156–175.

Sulastyawati, D. (2020). Social Inclusion; Practical Strategies to Promote Equality of Socio-Economics In Islamic Economic Framework. SALAM: Jurnal Sosial Budaya Syar’i, 7(11), 961–976.

Susanto, A., Irfany, M. I., Camara, B., & Haq, D. A. (2025). The Impact of Socioeconomic and Behavioral Factors on Health Indicators in OIC Countries. AL-MUZARA’AH-Journal of Islamic Economics & Finance, 13(1).

Syahputra, A. (2023). The Economy and Poverty Reduction; a Dimension of Health in Islam. Imara: Jurnal Riset Ekonomi Islam.

Thahir, M. I., Semmaila, B., & Arfah, A. (2021). The Impact of Economic Growth, Education and Health on Poverty in Takalar Regency. Journal of Management Science (JMS), 2(1), 2021.

Todaro, M. P., & Smith, S. C. (2009). Economic development. Pearson education.

Vandemoortele, J., & Delamonica, E. (2023). Growth is good for the poor? Not necessarily. Review of Political Economy, 35(4), 1157–1161.

Vasnev, A. L. (2010). Sensitivity of GLS estimators in random effects models. Journal of Multivariate Analysis, 101(5), 1252–1262.

Wahyudi, I., Mahroji, M., & Angelita, J. (2024). Ending poverty: Islamic solutions for the welfare of the ummah. Sentralisasi, 13(1), 182–198.

Wibowo, A. (2015). Distribution of zakat in the form of revolving capital participation as an accelerator of welfare equality. Jurnal Ilmu Manajemen, 12(2), 28–43.

Woessmann, L. (2016). The economic case for education. Education Economics, 24(1), 3–32.

Woo, J. (2020). Inequality, redistribution, and growth: new evidence on the trade-off between equality and efficiency. Empirical Economics, 58(6), 2667–2707.

Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data. MIT press.

Yaqin, N. A., & Billah, M. (2020). Respon Pemikiran Islam atas Problem Kemiskinan di Indonesia: Elaborasi Nalar Maqāṣidī dari Ḥifẓ an-Nafs ke Ḥifẓ al-Māl. Kontekstualita, 35(02), 121–142. https://doi.org/10.30631/35.02.121-142

Zailani, M. N., Mohd Satar, N., & Zakaria, R. H. (2022). A Review of Indicators for the Preservation of Wealth (Hifz al-Mal) based on Maqasid al-Shariah. Journal of Islamic Philanthropy & Social Finance (JIPSF), 4(1), 23–29.

Zailani, M. N., Satar, N. H. M., & Zakaria, R. H. (2022). Maqasid Al-Shariah based index of socio-economic development: A literature review. The Journal of Muamalat and Islamic Finance Research, 47–62.

Zhironkin, S., & Cehlar, M. (2022). Green Economy and Sustainable Development. MDPI-Multidisciplinary Digital Publishing Institute.




DOI: https://doi.org/10.18860/miec.v5i2.37557

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Editorial Office:

Megawati Soekarnoputri Building
Faculty of Economics
Jln. Gajayana 50 Telp (0341) 558881
E-mail: m-iecjournal@uin-malang.ac.id
UIN Maulana Malik Ibrahim Malang

Member of:

 

Indexed by:

               

Creative Commons License

Maliki Islamic Economics Journal under a CC BY SA 4.0 International License.

View My Stats