Determinants of Zakat: Econometric Study of the Development of Zakat in Algeria for the period ( 3002 – 2032(

Abstract

This study aims to identify the factors that affect changes in the value of individual zakat in Algeria during the period from 2003 to 2024, which enables us to build a model that combines zakat with those explanatory variables (the zakat nissab, the wage bill, the unemployment rate, the population, the inflation rate, the money supply, and the gross domestic product). Using econometric tools and methods such as Autoregressive Distributed Lag Periods (ARDL), and relying on Algeria’s economic data, we found that the model settled on only two variables out of seven, namely the zakat nissab and the unemployment rate. The nissab variable has a direct and continuous relationship in the present time and during two subsequent periods, while the effect of the unemployment variable is an inverse effect. Any slight increase in unemployment rates leads to a sharp and immediate decrease in the size of the zakat