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Are Private Providers more Productive and Efficient than Public Providers of International Education? Evidence from New Zealand

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  • Dayal Talukder

    ()
    (ICL Business School, Auckland, New Zealand)

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    Abstract

    This study has investigated the productivity growth and efficiency of private and public providers of international education in New Zealand. It has used secondary data to calculate the DEA-based Malmquist productivity index for measuring Total Factor Productivity (TFP)-growth and efficiency of both public and private providers of international education during 1999-2010. The study has found that private providers experienced a larger TFP-growth than that of public providers during 1999-2004. However, they experienced a sharp decline in TFP-growth since 2005 through to 2010 and experienced a much smaller TFP-growth than that of public providers during this period. Conversely, public providers experienced a positive TFP-growth during 1999-2004 but they experienced a negative TFP-growth since 2005 through to 2010. Considering efficiency, both private and public providers experienced almost a constant Technical Efficiency Change (TEC) having a same level of efficiency of one. Both private and public providers exhibited a constant return to scale during 1999-2010. This study argues that on an average, private providers are more productive than public providers of international education. However, they are not more efficient than public providers as both types of providers exhibited a constant return to scale during 1999-2010. This study also argues that TFP-growth of New Zealand’s international education was determined by Technological Change (TC), not by TEC during this period.

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    Bibliographic Info

    Article provided by Saphira Publishing House in its journal Oeconomics of Knowledge.

    Volume (Year): 3 (2011)
    Issue (Month): 4 (October)
    Pages: 2-23

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    Handle: RePEc:eok:journl:v:3:y:2011:i:4:p:2-23

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    1. A. Steven Englander, 1988. "Tests of Total Factor Productivity Measurement," OECD Economics Department Working Papers 54, OECD Publishing.
    2. Chang, Tzu-Pu & Hu, Jin-Li, 2010. "Total-factor energy productivity growth, technical progress, and efficiency change: An empirical study of China," Applied Energy, Elsevier, vol. 87(10), pages 3262-3270, October.
    3. Slade, Margaret E., 1986. "Total-factor-productivity measurement when equilibrium is temporary : A Monte Carlo assessment," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 75-95.
    4. Sharma, Subhash C. & Sylwester, Kevin & Margono, Heru, 2007. "Decomposition of total factor productivity growth in U.S. states," The Quarterly Review of Economics and Finance, Elsevier, vol. 47(2), pages 215-241, May.
    5. Barros, Carlos P. & Guironnet, Jean-Pascal & Peypoch, Nicolas, 2011. "Productivity growth and biased technical change in French higher education," Economic Modelling, Elsevier, vol. 28(1), pages 641-646.
    6. Charles Gore, 2007. "Which Growth Theory is Good for the Poor?," European Journal of Development Research, Taylor and Francis Journals, vol. 19(1), pages 30-48.
    7. Steven N. Durlauf & Andros KOURTELLOS & Chih Ming Tan, 2007. "Are Any Growth Theories Robust?," Discussion Papers Series, Department of Economics, Tufts University 0703, Department of Economics, Tufts University.
    8. Paul Krugman, 1995. "Technology, Trade, and Factor Prices," NBER Working Papers 5355, National Bureau of Economic Research, Inc.
    9. Windle, Robert J. & Dresner, Martin E., 1992. "Partial productivity measures and total factor productivity in the air transport industry: Limitations and uses," Transportation Research Part A: Policy and Practice, Elsevier, vol. 26(6), pages 435-445, November.
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