Measuring the efficiency of economic growth in East Java using data envelopment analysis

Zakiatul Wildani*, Wahyu Wibowo, Sri Pingit Wulandari

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Measuring the efficiency of economic growth has been regarded as a crucial task because it depicts the quality of people's lives. Efficiency refers to the ratio of output to specified inputs. There are some methods to investigate efficiency, such as Data Envelopment Analysis (DEA). This method evaluates the efficiency of a set of decision-making units (DMUs) that employ numerous inputs to generate output by solving linear programming problems. This method is widely known as a managerial tool for measuring efficiency because it does not require prior assumptions. Therefore, this paper aims to measure the efficiency of economic growth in 38 regions in East Java over the period 2015-2019 using Data Envelopment Analysis. We consider two input variables, namely labor and regional expenditure, and one output variable, regional Gross Domestic Product (GDP), meanwhile 38 regions are considered DMUs. The term input-oriented model refers to a reduction in the amount of input used to produce a given output, indicating input use efficiency. Furthermore, two DEA models termed CCR and BCC models are employed. The result reveals that by using the CCR model, Kota Kediri is the only efficient region during the period 2015-2019. Meanwhile, according to the BCC model, Kota Kediri, Kota Surabaya, Kota Mojokerto, Kota Pasuruan and Kota Probolinggo are all efficient. On the other hand, other regions are inefficient.

Original languageEnglish
Title of host publication3rd International Conference on Mathematics and Sciences, ICMSc 2021
Subtitle of host publicationA Brighter Future with Tropical Innovation in the Application of Industry 4.0
EditorsRudy Agung Nugroho, Veliyana Londong Allo, Meiliyani Siringoringo, Surya Prangga, Wahidah, Rahmiati Munir, Irfan Ashari Hiyahara
PublisherAmerican Institute of Physics Inc.
ISBN (Electronic)9780735442146
DOIs
Publication statusPublished - 11 Oct 2022
Event3rd International Conference on Mathematics and Sciences 2021: A Brighter Future with Tropical Innovation in the Application of Industry 4.0, ICMSc 2021 - East Kalimantan, Indonesia
Duration: 12 Oct 202113 Oct 2021

Publication series

NameAIP Conference Proceedings
Volume2668
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference3rd International Conference on Mathematics and Sciences 2021: A Brighter Future with Tropical Innovation in the Application of Industry 4.0, ICMSc 2021
Country/TerritoryIndonesia
CityEast Kalimantan
Period12/10/2113/10/21

Fingerprint

Dive into the research topics of 'Measuring the efficiency of economic growth in East Java using data envelopment analysis'. Together they form a unique fingerprint.

Cite this