Zakat Conditional Cash Transfers: Quantitative Methods and Evidence Gaps in RCT, DID, and PSM

Abstract

This study aims to review the methodological approaches used in assessing the impact of Conditional Cash Transfer (CCT) programs on poverty alleviation and human capital development. The novelty of this study lies in its systematic identification of methodological gaps within existing CCT research, offering new insights for adapting these methods to zakat-based welfare initiatives. Using a structured search guided by the PICO framework, relevant studies were retrieved from Scopus and Web of Science databases. The inclusion criteria focused on empirical studies published between 2018 and 2025 that reported measurable outcomes on poverty reduction and human capital enhancement. From 46 studies reviewed, 36 employed quantitative methods, with 22 using Randomized Controlled Trials (RCT), Difference-in-Differences (DiD), or Propensity Score Matching (PSM) to measure program impacts. These approaches emphasize causal inference through group comparisons between beneficiaries and non-beneficiaries. However, since the current research seeks to develop new CCT instruments for zakat distribution targeting asnaf groups who are not prior beneficiaries, such designs are not feasible. Instead, Partial Least Squares Structural Equation Modelling (PLS-SEM) is proposed as an appropriate analytical technique for construct validation and model development. The findings contribute methodological insights for designing evidence-based and sustainable zakat distribution strategies.