Efficiency and Productivity Growth Analysis of the Islamic Banking in Indonesia: Data Envelopment Analysis and Malmquist Productivity Index Approach

Author(s):  
Umar Faruk ◽  
Disman Disman ◽  
Nugraha Nugraha
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Slađana Savović ◽  
Predrag Mimović

PurposeThe purpose of this paper is to explore the effects of cross-border acquisitions on the efficiency and productivity of acquired companies in the cement industry in the context of a transitional economy.Design/methodology/approachThe Data Envelopment Analysis (DEA) and Malmquist Productivity Index were used to assess the efficiency and productivity of the acquired companies over the period 2000–2018. DEA and Malmquist index are combined with bootstrapping to perform succinct statistical inferences for determining the accuracy of results. The study assesses partial efficiency and productivity of three inputs: material, capital and labour, as well as the total factor efficiency and productivity of the acquired companies in the short and long term after the acquisitions.FindingsThe research results suggest that efficiency of material, efficiency of labour and the total factor efficiency of the acquired companies are higher after the acquisitions than before, while efficiency of capital is lower. In addition, the results show that the acquisitions had a positive impact on total factor productivity of the acquired companies.Practical implicationsThe results of this study have practical implications for managers, especially for policy-makers and industry analysts in deciding whether to encourage or discourage cross-border acquisitions in transitional economies.Originality/valueThe study contributes to a better understanding of the impact of cross-border acquisitions on efficiency and productivity of acquired companies in the manufacturing industry. Research in transitional economies related to subject matter is limited, and this study is the first empirical investigation of the effect of cross-border acquisitions on the efficiency and productivity in the cement industry in Serbia by applying the Data Envelopment Analysis.


2019 ◽  
Vol 06 (03) ◽  
pp. 1950026
Author(s):  
Farah Naz ◽  
Hafsa Khan ◽  
Muhammad Ishfaq Ahmad ◽  
Ramiz Ur Rehman ◽  
Muhammad Akram Naseem

The key area of this research is to analyze the total factor productivity of mutual funds by using Data Envelopment Analysis (DEA) and also to identify the components which play a significant role in the growth of productivity. Malmquist productivity index approach is a nonparametric method that decomposes the index into components of productivity. The process of decomposition also helps in identifying the contribution of technology and efficiency in the growth of mutual funds in Pakistan. Empirical results suggest that efficiency growth in mutual funds is presenting the upward trend. The individual results of mutual funds showed the divergent trend. The component of pure efficiency change has a great influence on productivity growth except for all others components, and technical change has a smaller number of contributions in productivity growth.


2020 ◽  
Author(s):  
Efat Mohamadi ◽  
Amirhossein Takian ◽  
Alireza Olyaee Manesh ◽  
Reza Majdzadeh ◽  
Farhad Hosseinzadeh Lotfi ◽  
...  

Abstract Background: Aiming to enhance quality of care and increase efficiency, public hospitals have undergone several reforms in the course of last two decades in Iran. This paper reports the result of a national research that aimed to measure the technical efficiency and productivity change of public hospitals during 2012-2016 in Iran. Methods: We used Extended Data Envelopment Analysis (Extended-DEA) (an innovative modification to conventional DEA) to measure technical efficiency and productivity of 568 public hospitals. Nationally representative data were extracted from the official annual health reports. Data were analysed using GAMS software 24.3. Results: The average efficiency score of all hospitals was 0.733. 10.1% of all hospitals were efficient while 2.68% of them were under 0.2. The Malmquist Productivity Index (MPI) progressed in 49.3% of hospitals, remained constant in 2.3%, while 48.2% of hospitals regressed during 2015-2016. The average of MPI was 1.07 over the period of analysis. Conclusions: Extra efforts seem to be essential to enhance the efficient use of resources and develop appropriate policy solutions and tools. In particular, to increase the return to scale, we advocate the merger of small-size district hospitals towards establishing bigger efficient hospitals in various geographical regions across the country.


2017 ◽  
Vol 59 (6) ◽  
pp. 826-838 ◽  
Author(s):  
Aminath Amany Ahmed ◽  
Azhar Mohamad

Purpose In this study, the authors use data envelopment analysis to assess the technical efficiency and performance of real estate investment trusts (REITs) in Singapore, for the years 2009 through 2013. Design/methodology/approach The authors apply the Malmquist Productivity Index to express the productivity change of the REITs over time. Findings The authors find that while most REITs have experienced efficiency improvements, there has been little productivity growth at the frontier during the study period. Originality/value The finding indicates that it is possible to improve the performance of the REITs by further improving technological efficiency because technological regress has been the main reason for the poor productivity growth of the REITs in Singapore.


2018 ◽  
Vol 3 (3) ◽  
pp. 69-82 ◽  
Author(s):  
Selvia Rustyani ◽  
Suherman Rosyidi

This study aims to measure the level of efficiency and productivity of zakat institutions in Indonesia.Quantitative research using the methods of Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI). There are six Amil Zakat (LAZ) institutions in Indonesia, namely Yayasan Dana SosialAl-Falah (YDSF), Al-Azhar Peduli Ummat, Aksi Cepat Tanggap (ACT), Yayasan Rumah Yatim Arrohman Indonesia,Pos Kemanusiaan Peduli Ummat (PKPU), and Rumah Zakat Indonesia, with 2014–2016 annual data as the number of DMUs (decision making units). This study uses an intermediation approach in determining the variables.The input variables of this research are Collected Funds (X1), Total Costs (X2), and Amil Acceptance (X3), while the Output variables are Funds Distributed (Y1) and Total Assets (Y2).There were two LAZs that experienced inefficiencies in 2014 and 2015, namely LAZ YDSF and ACT. Meanwhile, in 2016, all LAZs achieved optimal levels of efficiency. The results of the MPI analysis show that in the first year two LAZs experienced a decline in productivity, namely LAZ Al-Azhar and PKPU. The other four LAZs sawan increase in productivity, namely LAZ YDSF, ACT, Rumah Yatim, and Rumah Zakat. In the second year, three LAZsexperienced a rise in productivity, namely LAZ Al-Azhar, PKPU, and Rumah Zakat, while the other three LAZs experienced a decrease in productivity, namely LAZ YDSF, ACT, and Rumah Yatim.


2015 ◽  
Vol 6 (1) ◽  
pp. 25-33 ◽  
Author(s):  
Joanna Baran ◽  
Aleksandra Górecka

Abstract Seaport efficiency and productivity are the critical factors for handling of goods in the international supply chains and plays an important role in trade exchange with other countries. It is important to evaluate efficiency and productivity of seaports to reflect their status and reveal their position in competitive environment. The main purpose of this article is to use Data Envelopment Analysis and Malmquist Productivity Index to measure the technical efficiency and total factor productivity of container ports. DEA analysis enables one to assess how efficiently a seaports uses the available inputs to generate a set of outputs relative to other units in the data set. This article presents the use CCR and BCC DEA model, to determine overall technical efficiency, pure technical efficiency and scale efficiency of container ports. The analysis gives a possibility to create a efficiency ranking of seaports. The study also applies the Malmquist Productivity Index (MPI), which was used to analyze changes in seaports productivity. The study indicated that technological progress had a greater impact on the change in productivity of container ports than changes in technical efficiency.


1970 ◽  
Vol 5 (1) ◽  
pp. 77
Author(s):  
Mahadzir Ismail ◽  
Saliza Sulaiman ◽  
Hasni Abdul Rahim ◽  
Nordiana Nordin

The Financial Master Plan (2001- 2010) aims to enhance the capacity of banking industry so that higher effic iency and productivity can be reaped in the future. This study seeks to determine the impact of merger on the efficiency and productivity ofcommercial banks in Malaysia for the period 1995 until 2005. The study uses a non-parametric approach, nam ely DEA (data envelopment analysis?) to estimate the efficiency scores and to construct the Malmquist productivity index. To enable this estimation, three bank inputs and outputs are used. Amongst the findings are those banks exhibit higher efficiency score after the merger and thefo reign banks are more efficient than the local banks. Productivity of the banks is calculated in both periods, before and after the merger: The results show that, it is the local banks that have improved the most after the merger. The main source of productivity is technical change or innovation. The findings support the existing policy of having larger domestic banks in term of size.


2014 ◽  
Vol 2014 ◽  
pp. 1-12 ◽  
Author(s):  
Xishuang Han ◽  
Xiaolong Xue ◽  
Jiaoju Ge ◽  
Hengqin Wu ◽  
Chang Su

Data envelopment analysis can be applied to measure the productivity of multiple input and output decision-making units. In addition, the data envelopment analysis-based Malmquist productivity index can be used as a tool for measuring the productivity change during different time periods. In this paper, we use an input-oriented model to measure the energy consumption productivity change from 1999 to 2008 of fourteen industry sectors in China as decision-making units. The results show that there are only four sectors that experienced effective energy consumption throughout the whole reference period. It also shows that these sectors always lie on the efficiency frontier of energy consumption as benchmarks. The other ten sectors experienced inefficiency in some two-year time periods and the productivity changes were not steady. The data envelopment analysis-based Malmquist productivity index provides a good way to measure the energy consumption and can give China's policy makers the information to promote their strategy of sustainable development.


2019 ◽  
pp. 243-257
Author(s):  
Aas Nurasyiah ◽  
Risa Sari Pertiwi ◽  
Faqih Adam

The efficiency and productivity of Zakat institution have widely discussed, it is an organization based on social which looks after economic disparities. Most recently, Indonesia made a standardization policy and system of zakat institution, so that the zakat institution in Indonesia can reach the same quality or higher rather than other countries. It called Zakat Core Principles. Therefore, this research will focus on the zakat institution in Indonesia and Malaysia. The purpose of this study is to measure and compare the efficiency and productivity using Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI), which is a non-parametric and deterministic methodology for determining the relative efficiency and productivity. The result of this research shows, The first quadrant is the best efficient and productive institutions gained by zakat institution in Indonesia namely Sinergi Foundation and 3 zakat institutions in Malaysia namely Kedah, Melayu Perak, and Selangor. The second quadrant is highly productive but low efficient achieved by zakat institutions in Indonesia namely Baznas, RZ, Dompet Dhuafa and 1 zakat institution in Malaysia namely Jawhar. The third quadrant is high efficient but low productive didn’t achieve by any zakat institution in Indonesia or Malaysia. The fourth quadrant is low efficient and low productive reached by 1 zakat institution in Indonesia namely PKPU and 3 zakat institution in Malaysia namely Kelantan, PPZ and Pahang. The implication in this study is describing the position of zakat institution in Indonesia and Malaysia so that it is known which zakat institution could be a role model or benchmarking for other zakat institution.  


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