Document Type : Science - Research (Islamic Capital Market)

Authors

• سعید فراهانی فرد ¹
• Syyid Reza Hoseini ²
• sansz Rahimi ³

¹ قم 45 متری شهید صدوقی 20 متری حضرت ابوالفضل دانش 10 پلاک 24 واحد یک فراهانی فرد قم بلوار غدیر دانشگاه قم دانشکده علوم اقتصادی و اداری

² Associate Professor ,Department of Economics Research Institute of Hawzah and University, Qom, Iran..

³ PhD student, Department of Islamic Economics, Faculty of Economic and Administrative Sciences, University of Qom, Qom, Iran.

Abstract

The institution of waqf is one of the crucial tools in Islamic economics aimed at fostering equitable growth and alleviating poverty. Recently, new financial mechanisms for waqf have emerged that significantly expand its potential compared to the past. Waqf mutual investment funds are one such mechanism. These funds can channel the large assets endowed through waqf into productive and service-based activities in compliance with religious guidelines and the donors' intentions. This approach helps transition these assets from stagnation to active investment, ultimately contributing to economic growth. Since waqf mutual investment funds are relatively new in Iran, it is essential to assess public interest and willingness to participate in them. This study evaluates individuals' willingness to engage in charitable waqf within the capital market through these mutual investment funds using the Contingent Valuation Method (CVM). Required data were gathered through a two-dimensional, dichotomous-choice questionnaire. Parameters of the logit model, which identifies the factors influencing willingness to participate in this waqf fund, were estimated using the Maximum Likelihood Estimation (MLE) method. Results indicate that 38.78% of respondents are willing to contribute to this fund. Individual income, age, familiarity with waqf mutual investment funds, and positive attitudes have a significant positive impact on willingness, while marital status and proposed donation amount have a significant negative impact. The average contribution per individual is estimated at 1,728,381 IRR, leading to an estimated economic value of the fund at 148.573 trillion IRR

Keywords

• Investment funds
• Waqf
• Willingness to pay
• Contingent Valuation
• Logit model

Main Subjects

• Science - Research (Islamic Capital Market)