Efficiency of zakat institutions in Malaysia: an application of data envelopment analysis

The aim of this paper is to measure the efficiency of zakat institutions in Malaysia during the period of 2003 to 2007. Using a Data Envelopment Analysis (DEA) technique, the results show that zakat institutions have exhibited mean technical efficiency of 80.6%. The results also suggest that pure te...

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Main Authors: Abdul Wahab, Norazlina, Abdul Rahman, Abdul Rahim
Format: Article
Language:English
Published: The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) 2012
Subjects:
Online Access:http://irep.iium.edu.my/25973/
http://irep.iium.edu.my/25973/
http://irep.iium.edu.my/25973/1/My_Paper_in_SESRIC_zakat_efficiency.pdf
id iium-25973
recordtype eprints
spelling iium-259732012-11-06T13:21:44Z http://irep.iium.edu.my/25973/ Efficiency of zakat institutions in Malaysia: an application of data envelopment analysis Abdul Wahab, Norazlina Abdul Rahman, Abdul Rahim HJ9011 Local finance The aim of this paper is to measure the efficiency of zakat institutions in Malaysia during the period of 2003 to 2007. Using a Data Envelopment Analysis (DEA) technique, the results show that zakat institutions have exhibited mean technical efficiency of 80.6%. The results also suggest that pure technical inefficiency dominates the scale inefficiency effects in determining technical efficiency of zakat institutions in Malaysia. Further analysis of Spearman and Pearson correlation coefficients suggests that while higher Muslim population states tend to positively correlated to zakat collection, its correlation with efficiency score does not indicate a strong relationship, implying that it does not promise efficiency of zakat organization. The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) 2012 Article PeerReviewed application/pdf en http://irep.iium.edu.my/25973/1/My_Paper_in_SESRIC_zakat_efficiency.pdf Abdul Wahab, Norazlina and Abdul Rahman, Abdul Rahim (2012) Efficiency of zakat institutions in Malaysia: an application of data envelopment analysis. Journal of Economic Cooperation and Development, 33 (1). pp. 95-112. ISSN 1308-7800 http://www.sesric.org/jecd/jecd_articles/art11032901-2.pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HJ9011 Local finance
spellingShingle HJ9011 Local finance
Abdul Wahab, Norazlina
Abdul Rahman, Abdul Rahim
Efficiency of zakat institutions in Malaysia: an application of data envelopment analysis
description The aim of this paper is to measure the efficiency of zakat institutions in Malaysia during the period of 2003 to 2007. Using a Data Envelopment Analysis (DEA) technique, the results show that zakat institutions have exhibited mean technical efficiency of 80.6%. The results also suggest that pure technical inefficiency dominates the scale inefficiency effects in determining technical efficiency of zakat institutions in Malaysia. Further analysis of Spearman and Pearson correlation coefficients suggests that while higher Muslim population states tend to positively correlated to zakat collection, its correlation with efficiency score does not indicate a strong relationship, implying that it does not promise efficiency of zakat organization.
format Article
author Abdul Wahab, Norazlina
Abdul Rahman, Abdul Rahim
author_facet Abdul Wahab, Norazlina
Abdul Rahman, Abdul Rahim
author_sort Abdul Wahab, Norazlina
title Efficiency of zakat institutions in Malaysia: an application of data envelopment analysis
title_short Efficiency of zakat institutions in Malaysia: an application of data envelopment analysis
title_full Efficiency of zakat institutions in Malaysia: an application of data envelopment analysis
title_fullStr Efficiency of zakat institutions in Malaysia: an application of data envelopment analysis
title_full_unstemmed Efficiency of zakat institutions in Malaysia: an application of data envelopment analysis
title_sort efficiency of zakat institutions in malaysia: an application of data envelopment analysis
publisher The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC)
publishDate 2012
url http://irep.iium.edu.my/25973/
http://irep.iium.edu.my/25973/
http://irep.iium.edu.my/25973/1/My_Paper_in_SESRIC_zakat_efficiency.pdf
first_indexed 2023-09-18T20:38:44Z
last_indexed 2023-09-18T20:38:44Z
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