Zakat distribution and macroeconomic performance: Empirical evidence of Indonesia

Indonesia has a big potential in collecting zakat funds. The demography of Indonesia which has majority Muslim community is a condition that giving big chance to develop and manage this zakat funds. Providing empirical evidence, this study is intended to examine the effects of zakat on macroeconomic performance in Indonesia. The analysis technique of vector auto regression was chosen to show the illustration of the dynamic relationship between each variable.