Efficiency and productivity performance of zakat funds in Algeria. Issue 3 (19th February 2018)

• Record Type: Journal Article
• Authors: Djaghballou, Chams-Eddine; Djaghballou, Mohamed; Larbani, Mousa; Mohamad, Azhar
• Is Part Of: International journal of Islamic and Middle Eastern finance and management. Volume 11:Issue 3(2018)
• Page Start: 474
• Page End: 494
• Publication Date: 2018-02-19
• Subjects: Efficiency -- Algeria -- DEA -- Zakat -- Productivity performance; Finance -- Religious aspects -- Islam -- Periodicals; Financial institutions -- Religious aspects -- Islam -- Periodicals; Financial institutions -- Islamic countries -- Periodicals; Finance -- Islamic countries -- Periodicals; Management -- Religious aspects -- Islam -- Periodicals; Management -- Islamic countries -- Periodicals; 332.09176705
• DOI: 10.1108/IMEFM-07-2017-0185
• Languages: English
• ISSNs: 1753-8394

Abstract

Abstract : Purpose: 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/approach: In 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. Findings: The 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/value: The findings of this study are expected to contribute considerably to the existing knowledge on the operating performance of zakat funds in Algeria.