The Asymmetric Nexus between Economic Freedom and Islamic Social Giving Intensity in Indonesia

Authors

  • Ulfa Mardayanti Bank Mustaqim Aceh, Banda Aceh 23245, Indonesia
  • Cut Syazalisma Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh 23111, Indonesia; Regional Secretariat, South Aceh Regency Government, Tapaktuan 23711, Indonesia
  • Irsan Hardi Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh 23111, Indonesia; Economic Modeling and Data Analytics Unit, Graha Primera Saintifika, Aceh Besar 23371, Indonesia

DOI:

https://doi.org/10.60084/eje.v4i2.470

Keywords:

Islamic social giving intensity, Zakat, infaq, and sadaqah, Economic freedom, Asymmetric effects, NARDL

Abstract

Islamic social giving, comprising zakat, infaq, and sadaqah (ZIS), represents an important mechanism for strengthening social welfare and inclusive development in Muslim-majority economies. Existing Indonesian studies have examined the role of economic freedom primarily in relation to conventional economic outcomes and Islamic financial institutions, while studies of ZIS have focused on macroeconomic, socioeconomic, and institutional determinants. However, the extent to which economic freedom influences the intensity of Islamic social giving at the national level remains unexplored. This study investigates the impact of economic freedom on Islamic Social Giving Intensity (ISGI), measured as the ratio of ZIS collection to nominal GDP, in Indonesia over the period 2002-2025. Using the Heritage Foundation’s Index of Economic Freedom (IEF) and a nonlinear autoregressive distributed lag (NARDL) framework, the study examines whether positive and negative changes in IEF generate asymmetric effects on ISGI in both the short and long run. The results confirm the existence of significant asymmetry in both horizons. Positive changes in IEF significantly increase ISGI, while negative changes significantly reduce ISGI, indicating that Islamic social giving responds differently to expansions and contractions in economic freedom. The findings suggest that a more favorable economic environment can strengthen the mobilization of Islamic social resources, whereas a deterioration in economic freedom may weaken the capacity for Islamic social giving. These findings highlight the role of economic freedom in shaping Islamic social giving and inform policies to strengthen Islamic social finance in Indonesia.

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Published

2026-10-26

How to Cite

Mardayanti, U., Syazalisma, C. and Hardi, I. (2026) “The Asymmetric Nexus between Economic Freedom and Islamic Social Giving Intensity in Indonesia”, Ekonomikalia Journal of Economics, 4(2), pp. 88–102. doi: 10.60084/eje.v4i2.470.

Issue

Vol. 4 No. 2 (2026): October 2026 (In Press)

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Articles

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Copyright (c) 2026 Ulfa Mardayanti, Cut Syazalisma, Irsan Hardi

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