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Competition and efficiency: overseas students and technical efficiency in Australian and New Zealand universities

Author

Listed:
  • Malcolm Abbott
  • Chris Doucouliagos

Abstract

Economic theory suggests that competitive pressures will impact on organisational efficiency. In recent years, universities in Australia and New Zealand have faced increased competition for students. The aim of this paper is to explore the efficiency of Australian and New Zealand public universities and to investigate the impact of competition for students from overseas on efficiency. Output distance functions are estimated using panel data for the period 1995-2002 for Australia and 1997-2003 for New Zealand. The results show that competition for overseas students has led to increased efficiency in Australian universities. However, competition for overseas students appears to have had no effect on efficiency in New Zealand.

Suggested Citation

  • Malcolm Abbott & Chris Doucouliagos, 2009. "Competition and efficiency: overseas students and technical efficiency in Australian and New Zealand universities," Education Economics, Taylor & Francis Journals, vol. 17(1), pages 31-57.
  • Handle: RePEc:taf:edecon:v:17:y:2009:i:1:p:31-57
    DOI: 10.1080/09645290701773433
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    Citations

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    Cited by:

    1. Kristof de Witte & Laura López-Torres, 2015. "Efficiency in Education. A Review of Literature and a Way Forward," Working Papers 1501, Departament Empresa, Universitat Autònoma de Barcelona, revised Apr 2015.
    2. Haelermans, Carla & De Witte, Kristof & Blank, Jos L.T., 2012. "On the allocation of resources for secondary schools," Economics of Education Review, Elsevier, vol. 31(5), pages 575-586.
    3. Agasisti, Tommaso & Barra, Cristian & Zotti, Roberto, 2016. "Evaluating the efficiency of Italian public universities (2008–2011) in presence of (unobserved) heterogeneity," Socio-Economic Planning Sciences, Elsevier, vol. 55(C), pages 47-58.
    4. G. Thomas Sav, 2012. "Stochastic Cost Inefficiency Estimates and Rankings of Public and Private Research and Doctoral Granting Universities," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(3), pages 1-13, June.
    5. repec:hur:ijarbs:v:7:y:2017:i:3:p:440-457 is not listed on IDEAS
    6. Yaisawarng, Suthathip & Ng, Ying Chu, 2014. "The impact of higher education reform on research performance of Chinese universities," China Economic Review, Elsevier, vol. 31(C), pages 94-105.
    7. Thomas Bolli & Mehdi Farsi, 2015. "The dynamics of productivity in Swiss universities," Journal of Productivity Analysis, Springer, vol. 44(1), pages 21-38, August.
    8. Mehdi Rhaiem, 2017. "Measurement and determinants of academic research efficiency: a systematic review of the evidence," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(2), pages 581-615, February.
    9. Bolli, Thomas & Somogyi, Frank, 2011. "Do competitively acquired funds induce universities to increase productivity?," Research Policy, Elsevier, vol. 40(1), pages 136-147, February.
    10. Agasisti, Tommaso & Gralka, Sabine, 2017. "The transient and persistent efficiency of Italian and German universities: A stochastic frontier analysis," CEPIE Working Papers 14/17, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    11. Laureti, Tiziana & Secondi, Luca & Biggeri, Luigi, 2014. "Measuring the efficiency of teaching activities in Italian universities: An information theoretic approach," Economics of Education Review, Elsevier, vol. 42(C), pages 147-164.
    12. Fieger, Peter & Villano, Renato & Cooksey, Ray, 2015. "Efficiency of Australian TAFE and further education providers," MPRA Paper 64626, University Library of Munich, Germany.
    13. Tudor EDU & Iliuta Costel NEGRICEA, 2012. "Brand Positioning - A Marketing Resource and an Effective Tool for Small and Medium Enterprises," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(1), pages 1-11, February.
    14. Johnes, Jill, 2015. "Operational Research in education," European Journal of Operational Research, Elsevier, vol. 243(3), pages 683-696.
    15. Gawellek, Bastian & Sunder, Marco, 2016. "The German excellence initiative and efficiency change among universities, 2001-2011," Working Papers 142, University of Leipzig, Faculty of Economics and Management Science.
    16. G. Thomas SAV, 2012. "Is The Production of Religious Knowledge Efficient? Managing Faith Related Postsecondary Institutions," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(1), pages 1-12, February.
    17. OMORUYI, Trevor Uyi & REMBIELAK, Grazyna & PARLINSKA, Agnieszka, 2014. "INTERNATIONAL STUDENTS CONTRIBUTION TO BUSINESS SCHOOLS IN THE UK HEIs," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra Provider-Homepage: http://www.roaae.org;Association of Agricultural Economists in Slovakia (APES), vol. 17(2).
    18. G. Sav, 2012. "Stochastic Cost Frontier and Inefficiency Estimates of Public and Private Universities: Does Government Matter?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 18(2), pages 187-198, May.
    19. Fieger, Peter & Villano, Renato & Cooksey, Ray, 2015. "Two dimensional efficiency measurements in Australian TAFE Institutes," MPRA Paper 64625, University Library of Munich, Germany.
    20. Bergantino, Angela Stefania & Capozza, Claudia & Porcelli, Francesco, 2015. "Hotelling competition and teaching efficiency of Italian university faculties. A semi-parametric analysis," MPRA Paper 62927, University Library of Munich, Germany.
    21. Gralka, Sabine, 2016. "Persistent inefficiency in the higher education sector: Evidence from Germany," CEPIE Working Papers 06/16, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    22. repec:kap:iaecre:v:18:y:2012:i:2:p:187-198 is not listed on IDEAS
    23. Bolli, Thomas & Olivares, Maria & Bonaccorsi, Andrea & Daraio, Cinzia & Aracil, Adela Garcia & Lepori, Benedetto, 2016. "The differential effects of competitive funding on the production frontier and the efficiency of universities," Economics of Education Review, Elsevier, vol. 52(C), pages 91-104.
    24. Zara Daghbashyan & Enrico Deiaco & Maureen McKelvey, 2014. "How and why does cost efficiency of universities differ across European countries? An explorative attempt using new microdata," Chapters,in: Knowledge, Diversity and Performance in European Higher Education, chapter 9, pages iii-iii Edward Elgar Publishing.

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