ANALYSIS OF BOOTSTRAPPING DEA EFFICIENCY AND MALMQUIST INDEX IN GOVERNMENT EXPENDITURE ON ISLAMIC HUMAN DEVELOPMENT INDEX IN REGENCIES/CITIES OF EAST JAVA PROVINCE

Authors

  • Happy Karunia Mukti
    happykarunia01@gmail.com
    Departemen Ekonomi Syariah - Fakultas Ekonomi dan Bisnis - Universitas Airlangga
  • Ilmiawan Auwalin Departemen Ekonomi Syariah - Fakultas Ekonomi dan Bisnis - Universitas Airlangga
June 11, 2020

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Community welfare is the key to assess the success of an area. The government has a vital role in realizing community welfare. This study aims to evaluate the role of government related to the efficiency of government spending in creating conditions for a prosperous society in the Regency/City in East Java Province in 2011-2015. The efficiency calculation in this study uses the DEA Bootstrapping method with the assumption of Variable Return to Scale (VRS). In contrast, the assessment of the level of community welfare uses the Human Development Index from an Islamic perspective or Islamic Human Development Index (I-HDI). This study also calculated changes in total factor productivity (TFPC) using the Malmquist Index. The data used is sourced from the Central Statistics Agency (BPS) and the Directorate General of Fiscal Balance of the Ministry of Finance. The results of this study are the performance of regency/city governments in East Java has not yet reached an efficient condition. For the TFPC value, only three regions experienced an increase, one region was in a state of stagnation, while 34 other regions experienced a decrease in the value of TFPC.

Keywords: Efficiency of Government Expenditure, Islamic Human Development Index, DEA Bootstrapping and Malmquist Index.



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