Effect of Zakat on adjustment and distribution of wealth and economic growth

Islam is a comprehensive and complete religion that considers all aspects of human's life. Therefore, does not neglect the problem of adjustment and distribution of wealth and economic growth, so to improve the distribution of wealth and enhance economic growth, Islam gives orders to Muslims. One of these orders is Zakat. Based on explanations in Islam, it could have a prominent role in achieving higher economic growth and more justly wealth distribution. Poverty reduction and wealth adjustment synchronized with economic growth, is the biggest and most arduous target of policy makers of every country. To achieve this, economic schools present different policies. Also, Islam economic school provides some tools in this filed and one of them is Zakat. The purpose of this study is understanding how Zakat affects distribution of wealth and economic growth. After explaining theoretical bases, a model is presented in the simultaneous equations system framework. The results show that with introducing Zakat and rate of Muzaraah, Islamic economy could lead to economic growth and proper on adjustment and distribution of wealth, if these orders are executed accurately.