IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v12y2020i5p13-22.html
   My bibliography  Save this article

Adequacy of DEA in Measuring the Efficiency of Public Sector Entities in Nigeria: A Comparative Analysis Approach

Author

Listed:
  • Philip Odewole Olawale

Abstract

The study examined the efficiency of Decision- Making Units (DMUs) in the public sector entities in Nigeria. The study focused on the efficiency in the utilization of personnel cost releases to the federal educational and health institutions by the Federal Government of Nigeria. Secondary data were sourced from the Annual General Warrants from Audited financial statements of the Public Sector entities. Sampled size for the study comprised twenty-five (25) DMUs each from both sectors out of the major Federal Ministries from four (4) geo-political Zones and Abuja. Data were analyzed using Data Envelopment Analysis Model (DEA). The results of the average efficiency scores from both Charnes, Cooper and Rhodes Model (CCR) and Banker, Charnes and Cooper (BCC) on the DMUs showed that the sectors were marginally inefficient. The summary of the overall results therefore revealed that the DMUs under health sector performed averagely better than education sector in the utilization of personnel cost allocations. The study recommended that a central monitoring team be created jointly by the Federal Ministry of Finance and Accountant-General’s office to ensure full utilization of personnel cost releases to the DMUs. The study therefore concluded that only continuous assessment and periodic appraisal of the personnel cost utilization by the supervising ministries, can guarantee full efficiency in the utilization of personnel cost releases.

Suggested Citation

  • Philip Odewole Olawale, 2020. "Adequacy of DEA in Measuring the Efficiency of Public Sector Entities in Nigeria: A Comparative Analysis Approach," Journal of Economics and Behavioral Studies, AMH International, vol. 12(5), pages 13-22.
    • Handle: RePEc:rnd:arjebs:v:12:y:2020:i:5:p:13-22
    DOI: 10.22610/jebs.v12i5(J).3113
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/3113/1973
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/3113
    Download Restriction: no
    File URL: https://libkey.io/10.22610/jebs.v12i5(J).3113?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michaela Stanickova, 2017. "Can the implementation of the Europe 2020 Strategy goals be efficient? The challenge for achieving social equality in the European Union," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 12(3), pages 383-398, September.
    2. Yaw-Shun Yu & Ambrosio Barros & Chih-Hung Tsai & Kuo-Hsiung Liao, 2014. "A Comparison of Ratios and Data Envelopment Analysis: Efficiency Assessment of Taiwan Public Listed Companies," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(1), pages 212-219, January.
    3. Thomas Czypionka & Markus Kraus & Susanne Mayer & Gerald Röhrling, 2014. "Efficiency, ownership, and financing of hospitals: The case of Austria," Health Care Management Science, Springer, vol. 17(4), pages 331-347, December.
    4. Stanislav Sendek & Zuzana Svitálková & Katarína Angelovičová, 2015. "Efficiency Evaluation of Hospitals in the Environment of the Czech and Slovak Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(6), pages 2109-2118.
    5. Lili Tao & Xiaodong Liu & Yan Chen, 2013. "Online banking performance evaluation using data envelopment analysis and axiomatic fuzzy set clustering," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 1259-1273, February.
    6. Magdalena Cyrek, 2017. "Social efficiency of employment in three sectors — a comparison of Polish regions," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 12(3), pages 417-432, September.
    7. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    8. Ahn, Taesik & Charnes, Abraham & Cooper, William W., 1988. "Some statistical and DEA evaluations of relative efficiencies of public and private institutions of higher learning," Socio-Economic Planning Sciences, Elsevier, vol. 22(6), pages 259-269.
    9. Tommaso Agasisti & Geraint Johnes, 2009. "Beyond frontiers: comparing the efficiency of higher education decision-making units across more than one country," Education Economics, Taylor & Francis Journals, vol. 17(1), pages 59-79.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. G. Thomas Sav, 2013. "Effects of Financial Source Dependency on Public University Operating Efficiencies: Data Envelopment Single-Stage and Tobit Two-Stage Evaluations," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 63-73, February.
    2. Sanjeet Singh & Prabhat Ranjan, 2018. "Efficiency analysis of non-homogeneous parallel sub-unit systems for the performance measurement of higher education," Annals of Operations Research, Springer, vol. 269(1), pages 641-666, October.
    3. Renato A. Villano & Carolyn‐Dung T. T. Tran, 2021. "Survey on technical efficiency in higher education: A meta‐fractional regression analysis," Pacific Economic Review, Wiley Blackwell, vol. 26(1), pages 110-135, February.
    4. Ján Dobrovič & Veronika Čabinová & Peter Gallo & Petra Partlová & Jan Váchal & Beáta Balogová & Jozef Orgonáš, 2021. "Application of the DEA Model in Tourism SMEs: An Empirical Study from Slovakia in the Context of Business Sustainability," Sustainability, MDPI, vol. 13(13), pages 1-19, July.
    5. Margareta Gardijan & Zrinka Lukač, 2018. "Measuring the relative efficiency of the food and drink industry in the chosen EU countries using the data envelopment analysis with missing data," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(3), pages 695-713, September.
    6. Avkiran, Necmi K., 2001. "Investigating technical and scale efficiencies of Australian Universities through data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 35(1), pages 57-80, March.
    7. Tommaso Agasisti & Giuseppe Munda, 2017. "Efficiency of investment in compulsory education: An Overview of Methodological Approaches," JRC Research Reports JRC106681, Joint Research Centre.
    8. Zanakis, Stelios H. & Mandakovic, Tomislav & Gupta, Sushil K. & Sahay, Sundeep & Hong, Sungwan, 1995. "A review of program evaluation and fund allocation methods within the service and government sectors," Socio-Economic Planning Sciences, Elsevier, vol. 29(1), pages 59-79, March.
    9. Rize Jing & Tingting Xu & Xiaozhen Lai & Elham Mahmoudi & Hai Fang, 2019. "Technical Efficiency of Public and Private Hospitals in Beijing, China: A Comparative Study," IJERPH, MDPI, vol. 17(1), pages 1-18, December.
    10. Mehdi Rhaiem & Nabil Amara, 2020. "Determinants of research efficiency in Canadian business schools: evidence from scholar-level data," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(1), pages 53-99, October.
    11. Glover, Fred & Sueyoshi, Toshiyuki, 2009. "Contributions of Professor William W. Cooper in Operations Research and Management Science," European Journal of Operational Research, Elsevier, vol. 197(1), pages 1-16, August.
    12. Tommaso Agasisti & Aleksei Egorov & Pavel Serebrennikov, 2020. "How Do The Characteristics Of The Environment Influence University Efficiency? Evidence From A Conditional Efficiency Approach," HSE Working papers WP BRP 238/EC/2020, National Research University Higher School of Economics.
    13. Ricardo Ocaña-Riola & Carmen Pérez-Romero & Mª Isabel Ortega-Díaz & José Jesús Martín-Martín, 2021. "Multilevel Zero-One Inflated Beta Regression Model for the Analysis of the Relationship between Exogenous Health Variables and Technical Efficiency in the Spanish National Health System Hospitals," IJERPH, MDPI, vol. 18(19), pages 1-18, September.
    14. Joanna Wolszczak-Derlacz, 2015. "Analysis of efficiency of European and American higher education institutions - nonparametric approach," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 40.
    15. M J Mancebón & M A Muñiz, 2008. "Private versus public high schools in Spain: disentangling managerial and programme efficiencies," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(7), pages 892-901, July.
    16. Chia-Nan Wang & Hector Tibo & Duy Hung Duong, 2020. "Renewable Energy Utilization Analysis of Highly and Newly Industrialized Countries Using an Undesirable Output Model," Energies, MDPI, vol. 13(10), pages 1-21, May.
    17. Tommaso Agasisti & Aleksei Egorov & Margarita Maximova, 2020. "Do Merger Policies Increase University Efficiency? Evidence From A Fuzzy Regression Discontinuity Design," HSE Working papers WP BRP 226/EC/2020, National Research University Higher School of Economics.
    18. Gnewuch, Matthias & Wohlrabe, Klaus, 2018. "Super-efficiency of education institutions: an application to economics departments," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26, pages 610-623.
    19. George E. Halkos & Nickolaos G. Tzeremes & Stavros A. Kourtzidis, 2010. "An application of statistical interference in DEA models: An analysis of public owned university departments' efficiency," EERI Research Paper Series EERI_RP_2010_17, Economics and Econometrics Research Institute (EERI), Brussels.
    20. Wang, Derek D., 2019. "Performance-based resource allocation for higher education institutions in China," Socio-Economic Planning Sciences, Elsevier, vol. 65(C), pages 66-75.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:12:y:2020:i:5:p:13-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.