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Efficiency and productivity performance of zakat funds in Algeria

Chams-Eddine Djaghballou (Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia)
Mohamed Djaghballou (Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia)
Mousa Larbani (Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia)
Azhar Mohamad (Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia)

International Journal of Islamic and Middle Eastern Finance and Management

ISSN: 1753-8394

Article publication date: 19 February 2018

Issue publication date: 9 August 2018

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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.

Keywords

Citation

Djaghballou, C.-E., Djaghballou, M., Larbani, M. and Mohamad, A. (2018), "Efficiency and productivity performance of zakat funds in Algeria", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 11 No. 3, pp. 474-494. https://doi.org/10.1108/IMEFM-07-2017-0185

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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