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Efficiency and productivity performance of zakat funds in Algeria

Efficiency and productivity performance of zakat funds in Algeria The purpose of this study is to examine the efficiency and productivity performance of zakat funds managed by Directorates of Religious Affairs and Endowments (DRAE) in Algeria.Design/methodology/approachIn this study, the authors employ data envelopment analysis and measure Malmquist Productivity Index for DRAE’s input and output data spanning from 2003 to 2013.FindingsThe authors find that total factor productivity has increased sharply for all zakat funds, mainly due to a technical rather than efficiency change. Further decomposition of the efficiency change into its pure technical and scale efficiency components suggests that the pure efficiency is a more important source of efficiency change than the scale efficiency component, meaning that zakat funds rely on technical aspects to gain efficiency.Originality/valueThe findings of this study are expected to contribute considerably to the existing knowledge on the operating performance of zakat funds in Algeria. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Islamic and Middle Eastern Finance and Management Emerald Publishing

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References (35)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1753-8394
DOI
10.1108/imefm-07-2017-0185
Publisher site
See Article on Publisher Site

Abstract

The purpose of this study is to examine the efficiency and productivity performance of zakat funds managed by Directorates of Religious Affairs and Endowments (DRAE) in Algeria.Design/methodology/approachIn this study, the authors employ data envelopment analysis and measure Malmquist Productivity Index for DRAE’s input and output data spanning from 2003 to 2013.FindingsThe authors find that total factor productivity has increased sharply for all zakat funds, mainly due to a technical rather than efficiency change. Further decomposition of the efficiency change into its pure technical and scale efficiency components suggests that the pure efficiency is a more important source of efficiency change than the scale efficiency component, meaning that zakat funds rely on technical aspects to gain efficiency.Originality/valueThe findings of this study are expected to contribute considerably to the existing knowledge on the operating performance of zakat funds in Algeria.

Journal

International Journal of Islamic and Middle Eastern Finance and ManagementEmerald Publishing

Published: Aug 9, 2018

Keywords: Efficiency; Algeria; DEA; Zakat; Productivity performance

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