Since 2014
Waqf Financing Expenditure and its Impact on Government Debt
European Journal of Islamic Finance
View Archive Info| Field | Value | |
| Title |
Waqf Financing Expenditure and its Impact on Government Debt
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| Creator |
Azrai Azaimi Ambrose, Azniza Hartini
Aslam, Mohamed Hanafi, Hanira |
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| Subject |
Waqf; Islamic Economics; Public Finance
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| Description |
The Malaysian debt has been under scrutiny since the 1Malaysia Development Berhad (1MDB) scandal; placing pressure on the research for sustainable debt. The purpose of this article is to forecast the impact of waqf (Islamic pious foundation) financing expenditure on federal government debt in Malaysia. It is to ascertain whether waqf can be an alternative solution to government debt reduction. To perform this, the Neoclassical Dynamic Stochastic General Equilibrium (DSGE) model is adopted. The theoretical framework is developed by considering the history, tradition, culture, and political influence of waqf primarily in Muslim majority countries. It was also inspired by the European third sector framework. The result shows that federal government debt can be reduced when waqf finances federal government expenditure. This has several implications. For one, this study revives the cohesive government-waqf role in providing pure and mixed public goods without depending solely on government expenditure. It highlights the fact that these shared role has an impact of reducing government debt. The result also inadvertently provides evidence of a significant third sector role on public finance dynamics. As a matter of fact, this study is one of very few quantitative attempts in illustrating how waqf interacts with the economy and its impact on government debt.
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| Publisher |
European Journal of Islamic Finance
European Journal of Islamic Finance |
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| Contributor |
—
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| Date |
2019-08-29
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.ojs.unito.it/index.php/EJIF/article/view/3214
10.13135/2421-2172/3214 http://www.ojs.unito.it/index.php/EJIF/article/download/3214/pdf |
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| Source |
European Journal of Islamic Finance; No 13 (2019): EJIF - European Journal of Islamic Finance, 13, 2019
European Journal of Islamic Finance; No 13 (2019): EJIF - European Journal of Islamic Finance, 13, 2019 2421-2172 |
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| Language |
eng
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| Relation |
http://www.ojs.unito.it/index.php/EJIF/article/view/3214/pdf
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| Rights |
Copyright (c) 2019 Azniza Hartini Azrai Azaimi Ambrose, Mohamed Aslam, Hanira Hanafi
http://creativecommons.org/licenses/by-sa/4.0 |
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