Measuring the Productivity of SDG-3 Output in OIC Countries
DOI:
https://doi.org/10.58968/pml.v1i1.453Keywords:
SDG-3, OIC, Health, DEA, MPI, ProductivityAbstract
Sustainable Development Goal 3 (SDG 3) focuses on ensuring healthy lives and promoting well-being for all at all ages. It aims to address various aspects of health and well-being, with specific targets to achieve by 2030. This study aims to calculate the efficiency and productivity based on SDG-3 output, 'Good Health and Wellbeing' in 50 countries that are members of the OIC over an 8-year period, from 2010 to 2017. Efficiency measurement was conducted using the Data Envelopment Analysis (DEA) method. Meanwhile, to measure the productivity score, this study using Malmquist Productivity Index (MPI). The result shows that the average efficiency value of OIC countries as a whole is 0.54. The country with the highest efficient value is Brunei with an efficiency value of 0.998, and the lowest country with an efficiency value of 0.35 is Indonesia. On the other hand, the country that experienced the most increase in productivity was Turkey with a TFP value of 1.357 and the country that experienced the largest decrease in productivity was Cameroon with a TFP value of 0.746.
References
Afzal, M. N. I., & Manni, U. H. (2013). Knowledge-based economy (KBE) frameworks and empirical investigation of KBE input-output indicators for ASEAN. Asian Research Policy, 4, 1-9.
Alayya, U., & Rani, L. N. (2019). Intertemporal Efficiency Analysis of Indonesian Sharia Commercial Bank after Spin off Period 2013-2017: Data Envelopment Analysis (Window Analysis). 2nd International Conference on Islamic Economics, Business and Philanthropy (ICIEBP).
Asghar, N., Rehman, H. U., & Ali, M. (2019). Cost Productivity of Healthcare Systems in OIC Member Countries: an Application of Cost Malmquist Total Productivity Index. Review of Economics and Development Studies, 5(3), 461-468. https://doi.org/10.26710/reads.v5i3.696
Avenzora, Ahmad and Moeis, Jossy P. (2008). Productivity and Efficiency Analysis of Textile Industry and Textile Products Industry in Indonesia in 2002-2004. Parallel Session IVB Industry and Manufacturing, Hotel Nikko Hotel Jakarta.
Bakhtiari, S., & Meisami, H. (2010). An empirical investigation of the effects of health and education on income distribution and poverty in Islamic countries. International Journal of Social Economics, 37(4), 293-301. https://doi.org/10.1108/03068291011025255
Bayraktar, B. (2002). Poverty and Health Problems in the Least Developed and Low-Income OIC Member Countries. Cooperation, Economic, 23(4), 103-148. http://www.sesric.org/jecd/jecd_articles/ART02070104-2.pdf
Bjurek, H. (1996). The Malmquist Total Factor Productivity Index. Scandinavian Journal of Economics, Vol.98, No.2, pp.303-313.
Caves et.al. (1982). The Economic Theory of Index Number and the Measurement of Input, Output and Productivity. Productivity. Econometrica, 50(6):1393-1414.
Charnes, A., Cooper, W. W. & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2, 429-444.
Coelli, T. (1996). A Guide to DEAP 2.1: A data envelopment analysis (computer) program. Armidale: University of New England.
Farooq, F., Yusop, Z., & Chaudhry, I. S. (2019). How Do Trade Openness and Public Expenditures Affect Health Status in OIC Member Countries? An Empirical Analysis. Pakistan Journal of Commerce and Social Sciences, 13(4), 1041-1056.
Farrell, M.L. (1957). The Measurement of Productive Efficiency, Journal of the Royal Statistical Society, 120, p.253-281
Hadian, M., Nejadlabbaf, S., Ghaderi, H., & Jari, A. (2014). The Effect of Inequality Distribution of Income on Health Indicators in Developing Countries. Iranian Journal of Business and Economics, 1(2).
Hajebi, E., & Razmi, M. J. (2014). Effect of Income Inequality on Health Status in a Selection of Middle and Low Income Countries. Equilibrium, 9(4), 133-152. https://doi.org/10.12775/equil.2014.029
Kefeli, Z., & Zaidi, M. A. S. (2014). Effect of Health on Economic Development: Evidence Among OIC High-Income Economies. 9th PERKEM PROSIDINGS, 9, 796-803.
Kim, J. & Lau, L. J. (1994). The sources of economic growth of the East Asian newly industrialized countries. Journal of the Japanese and International Economies, 8(3), 235-292.
Konaç. (2003). Health and Sanitary Issues in the OIC Member Countries: Income-Health Linkages. Cooperation, Economic, 3, 119-150.
Krugman, P. (1994). The myth of Asia's miracle. Foreign Affairs, 73 (6), 62-78.
Masri, M. D. and Asbu E. Z. (2018). Productivity change of national health systems in the WHO Eastern Mediterranean region: application of DEA-based Malmquist productivity index. Global Health Research and Policy, 3(22), 1-13.
Mohamad, N. H. and Said, F. B., 2011. Comparing Macroeconomic Performance of OIC Member Countries. Countries, International Journal of Economics and Management Sciences, 1(3), pp. 90-104.
Motaghi, S. (2016). Factors affecting on health economic improvement in Islamic Conference (OIC) Member Countries. 3rd International Conference on Modern Research in Management, Economics & Humanities, 1-6.
Pedram, M., & Mehrjou, B. (2019). THE IMPACT OF GLOBALIZATION AND GOVERNMENT EXPENDITURE ON HEALTH: A SELECTED STUDY FROM DEVELOPING COUNTRIES. Journal of Economic and Social Research, 18(5), 776-782.
Ramanathan, R. (2003). An Introduction to Data Envelopment Analysis: A tool for performance measurement. New Delhi: Sage Publications.
Ranjbar, H., & Torkian, E. (2014). An Analysis of Effective Factors on the Technical Efficiency of Health Production in the OIC Countries. International Economics Studies, 43(2), 29-38. https://search.proquest.com/docview/1751981533?accountid=14525 http://ucelinks.cdlib.org:8888/sfx_local?url_ver=Z39.88-2004&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&genre=article&sid=ProQ:ProQ%3Aeconlit&atitle=An+Analysis+of+Effective+Factors+on+the+Technology
Razzak, J. A., Khan, U. R., Azam, I., Nasrullah, M., Pasha, O., Malik, M., & Ghaffar, A. (2011). Health disparities between Muslim and non-Muslim countries. Eastern Mediterranean Health Journal, 17(9), 654-664. https://doi.org/10.26719/2011.17.9.654
Sami, B., & Ali, Y. E. (2016). The Efficiency of Islamic Banks in North Africa: Analysis with the Non-Parametric Approach DEA (Window Analysis). Global Journal of Management and Business, Research: C Finance, 16(5).
Shawtari, F. A., Kareem, M. A. A., & Razak, S. H. A. (2014). Efficiency and Stability Assessment of the Yemeni Banking Sector Using Data Envelopment Window Analysis (DEWA). Proceedings of the 12th International Conference of DEA, 144-153. https://doi.org/10.13140/RG.2.1.3353.2966
Shawtari, F. A., Salem, M. A., & Bakhit, I. (2018). Decomposition of efficiency using DEA window analysis: A comparative evidence from Islamic and conventional banks. Benchmarking An International Journal, 25(6), 1681-1705. https://doi.org/10.1108/BIJ-12-2016-0183
Sherman, H.D. and Gold. (1985). Bank Branch Operating Efficiency: Evaluation with Data Envelopment Analysis, Journal of Banking and Finance, 9, 279-315.
Taylor, R. J. (2007). Technical progress and economic growth: An empirical case study of Malaysia. Cheltenham: Edward Elgar.
Tsolas, Ioannis E. and Giokas, Dimitris I. (2012). Bank branch efficiency evaluation by means of least absolute deviations and DEA. Managerial Finance Vol 38 No. 8, 2012.
Wahab, A. A. O. A., Hashim, N., & Kefeli, Z. (2019). Diagnosing the Dynamic Drivers of Healthcare Expenditure in Organization of Islamic Cooperation (OIC) Countries. Journal of Reviews on Global Economics, 8, 873-885. https://doi.org/10.6000/1929-7092.2019.08.75
Wahab, A. A. O. A., & Kefeli, Z. (2017). Modeling the Effect of Healthcare Expenditure and Education Expenditure on Labor Productivity: A Study on OIC Countries. Journal of Business and Economics Review, 2(2), 31-37. http://gatrenterprise.com/GATRJournals/pdf_files/JBER Vol 2(2) Apr-Jun 2017/5.JBER-Abdul-Azeez-Abdul-Wahab-CIMSSR-00253.pdf
Young, A. (1994). Lessons from the East Asian NICS: A contrarian view. European Economic Review, 38(3), 964-973.
