Rosyetti, Sri Endang Kornita, Hilmah Zuryani

<strong>Name of Scholar: </strong>Rosyetti, Sri Endang Kornita, Hilmah Zuryani<br><strong>Brief About Scholar: </strong>This study aims at discovering whether there is a causal relationship between zakah (alms) and unemployment and whether there is a significant influence between zakah (alms) and unemployment or vice versa between unemployment and zakah (alms), in Riau Province from 2011 (Q1) to 2018 (Q4). The type of data used in this study are quantitative secondary data, and it is in time series obtained from the publication of the National Alms Agency (Baznas), and the Central Statistics Agency (BPS).
Data analysis methods used the Model: Vector Auto Regression (VAR) with assistive tool of Granger Causality to see whether there is a causal or reciprocal relationship of zakah (alms) and unemployment. Data analysis techniques used the "Vector Error Correction Model" (VECM) to discover the relationship between zakah (alms) and unemployment and short-term behavior of zakah (alms) and unemployment to the long term, due to permanent shock, using the help of E-Views 10 Application Software.
From the test having been done, the results obtained are that there is a one-way relationship between zakah (alms) and unemployment, in which the unemployment rate affects zakah (alms) indicating that Muslims of Riau Province are only at the level of ritual worship, or in other terms, it is still relatively secular. On the contrary, zakah (alms) does not affect unemployment. Then, in the long term, it shows that unemployment has a negative and significant effect on zakah (alms). Furthermore, in the long term on lag 2, unemployment does not have a significant negative effect on zakah (alms).<br><strong>Name of Institution: </strong>University of Riau<br><strong>Previous Research Papers: </strong>N/A<br>