Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis

Purpose – The purpose of this paper is to analyze the changes in productivity of zakat institutions in Malaysia from 2003 to 2007. The data consist of a panel of 14 State Islamic Religious Councils (SIRCs) in Malaysia. Efficiency is measured by the Malmquist Index, using a data envelopment analysis...

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Main Authors: Abd. Wahab, Norazlina, Abdul Rahman, Abdul Rahim
Format: Article
Language:English
Published: Emerald Group Publishing Limited 2012
Subjects:
Online Access:http://irep.iium.edu.my/29237/
http://irep.iium.edu.my/29237/
http://irep.iium.edu.my/29237/
http://irep.iium.edu.my/29237/1/Productivity_growth_of_zakat.pdf
id iium-29237
recordtype eprints
spelling iium-292372013-03-04T02:20:57Z http://irep.iium.edu.my/29237/ Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis Abd. Wahab, Norazlina Abdul Rahman, Abdul Rahim HB Economic Theory Purpose – The purpose of this paper is to analyze the changes in productivity of zakat institutions in Malaysia from 2003 to 2007. The data consist of a panel of 14 State Islamic Religious Councils (SIRCs) in Malaysia. Efficiency is measured by the Malmquist Index, using a data envelopment analysis (DEA) technique. Design/methodology/approach – This paper uses Malmquist Productivity Index, using a DEA technique. The Malmquist productivity measures are decomposed into two components: efficiency change and technical change index. Findings – The results showed that total factor productivity (TFP) has increased slightly for the whole industry, which is mainly due to the technical change rather than the efficiency change. Further decomposition of the efficiency change into its pure technical and scale efficiency components suggest that the pure efficiency is found to be a more important source of efficiency change than scale efficiency component. Originality/value – This paper investigates the productivity and efficiency of zakat institutions in Malaysia. It will be of value to provide evidence to the policy makers to improve the efficiency of the institutions. Emerald Group Publishing Limited 2012 Article PeerReviewed application/pdf en http://irep.iium.edu.my/29237/1/Productivity_growth_of_zakat.pdf Abd. Wahab, Norazlina and Abdul Rahman, Abdul Rahim (2012) Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis. Studies in Economics and Finance, 29 (3). pp. 197-210. ISSN 1086-7376 http://www.emeraldinsight.com/journals.htm?articleid=17044218 10.1108/10867371211246876
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HB Economic Theory
spellingShingle HB Economic Theory
Abd. Wahab, Norazlina
Abdul Rahman, Abdul Rahim
Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis
description Purpose – The purpose of this paper is to analyze the changes in productivity of zakat institutions in Malaysia from 2003 to 2007. The data consist of a panel of 14 State Islamic Religious Councils (SIRCs) in Malaysia. Efficiency is measured by the Malmquist Index, using a data envelopment analysis (DEA) technique. Design/methodology/approach – This paper uses Malmquist Productivity Index, using a DEA technique. The Malmquist productivity measures are decomposed into two components: efficiency change and technical change index. Findings – The results showed that total factor productivity (TFP) has increased slightly for the whole industry, which is mainly due to the technical change rather than the efficiency change. Further decomposition of the efficiency change into its pure technical and scale efficiency components suggest that the pure efficiency is found to be a more important source of efficiency change than scale efficiency component. Originality/value – This paper investigates the productivity and efficiency of zakat institutions in Malaysia. It will be of value to provide evidence to the policy makers to improve the efficiency of the institutions.
format Article
author Abd. Wahab, Norazlina
Abdul Rahman, Abdul Rahim
author_facet Abd. Wahab, Norazlina
Abdul Rahman, Abdul Rahim
author_sort Abd. Wahab, Norazlina
title Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis
title_short Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis
title_full Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis
title_fullStr Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis
title_full_unstemmed Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis
title_sort productivity growth of zakat institutions in malaysia: an application of data envelopment analysis
publisher Emerald Group Publishing Limited
publishDate 2012
url http://irep.iium.edu.my/29237/
http://irep.iium.edu.my/29237/
http://irep.iium.edu.my/29237/
http://irep.iium.edu.my/29237/1/Productivity_growth_of_zakat.pdf
first_indexed 2023-09-18T20:42:54Z
last_indexed 2023-09-18T20:42:54Z
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