Maqashid Shariah Indicators Impact on Poverty Eradication in Java Island
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Abstract
Understanding poverty from both economic and Islamic ethical perspectives is essential to formulating inclusive development strategies that align with societal values. This study aims to analyze the determinants of poverty rate in Java Island during the period 2014–2023. The method used in this study is panel data analysis. Panel data is a combination of time series data and cross section data. The analytical method used for panel data is panel data regression. It allows observation of the dynamics of changes in variables over time as well as comparisons between regions. Data obtained from the Central Statistics Agency and other official sources. A panel data analysis model is used to evaluate the influence of each variable on the poverty rate. The research results show that education (hifzul ‘aqal) and population (hifzul nasl) has a negative and significant effect on poverty rate, while the unemployment rate shows a positive and significant influence. Test Simultaneous confirms that these three variables work together makes a significant contribution to poverty on the island of Java. The coefficient of determination obtained was 0,5533, indicating that around 55,33% of poverty rate was influenced by education, population, and unemployment, while the rest was influenced by other factors not analyzed. The novelty of this study is the measurement of the impact of the maqasid shariah indicators, namely hifzul 'aqal, hifzul nasl, and unemployment that is contrary to hifzul maal in a simple way on the poverty rate eradication in Java. This study tries to open the new perspective that Maqasid Shariah has been realized in Javanese society with various modern indicators, so that a process of synchronization and alignment of understanding is needed so that the impact of Maqasid Shariah can be measured.
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