Can Faith-Based Education and Philanthropy Alleviate Poverty in Aceh?
DOI:
https://doi.org/10.22373/aiszawa.v2i1.9738Keywords:
Gross Regional Domestic Product, Islamic Boarding School Education, Poverty, Zakat DistributionAbstract
Poverty remains a major challenge for many countries, including Indonesia. When poverty persists, it threatens national resilience. Aceh, which still struggles with high poverty rates, remains the poorest province on the island of Sumatra based on 2020 data. This study re-examines the factors influencing poverty levels in Aceh by highlighting the role of Islamic boarding school education and zakat distribution. The inclusion of Islamic boarding school education is a unique contribution, considering that pesantren are rarely studied as an economic element affecting poverty reduction. Gross Regional Domestic Product (GRDP) is included in this study as a control variable. Using a quantitative approach with panel data regression, this study employs secondary cross-sectional data from 23 districts/cities in Aceh Province combined with time series data from 2017 to 2019 obtained from the Aceh Baitul Mal Agency and the Aceh Provincial Statistics Agency. The findings show that Islamic boarding school education and zakat distribution both have a negative but statistically insignificant effect on poverty levels in Aceh, while the control variable GRDP demonstrates a negative and significant effect. The overall model is highly significant in explaining the variation in poverty, with an adjusted R-squared value of 98%. These results are expected to provide insights for policymakers in designing strategies to alleviate poverty in Aceh Province.
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