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

  • Malcolm Abbott
  • Chris Doucouliagos

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.

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File URL: http://www.tandfonline.com/10.1080/09645290701773433
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Article provided by Taylor & Francis Journals in its journal Education Economics.

Volume (Year): 17 (2009)
Issue (Month): 1 ()
Pages: 31-57

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Handle: RePEc:taf:edecon:v:17:y:2009:i:1:p:31-57
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  1. Abbott, M. & Doucouliagos, C., 2003. "The efficiency of Australian universities: a data envelopment analysis," Economics of Education Review, Elsevier, vol. 22(1), pages 89-97, February.
  2. Andrew Worthington, 2001. "An Empirical Survey of Frontier Efficiency Measurement Techniques in Education," Education Economics, Taylor & Francis Journals, vol. 9(3), pages 245-268.
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  4. Richard Pomfret & Liang Choon Wang, 2003. "Evaluating The Research Output Of Australian Universities' Economics Departments," Australian Economic Papers, Wiley Blackwell, vol. 42(4), pages 418-441, December.
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  8. Tim Coelli & Sergio Perelman, 2000. "Technical efficiency of European railways: a distance function approach," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1967-1976.
  9. Roger Carrington & Tim Coelli & D. S. Prasada Rao, 2005. "The Performance Of Australian Universities: Conceptual Issues And Preliminary Results," Economic Papers, The Economic Society of Australia, vol. 24(2), pages 145-163, 06.
  10. Hay, Donald A & Liu, Guy S, 1997. "The Efficiency of Firms: What Difference Does Competition Make?," Economic Journal, Royal Economic Society, vol. 107(442), pages 597-617, May.
  11. O'Donnell, Christopher J. & Coelli, Timothy J., 2005. "A Bayesian approach to imposing curvature on distance functions," Journal of Econometrics, Elsevier, vol. 126(2), pages 493-523, June.
  12. Rafael Cuesta & José Zofío, 2005. "Hyperbolic Efficiency and Parametric Distance Functions: With Application to Spanish Savings Banks," Journal of Productivity Analysis, Springer, vol. 24(1), pages 31-48, 09.
  13. Mita Bhattacharya & Russell Smyth, 2003. "The Life Cycle Research Output Of Professors In Australian Economics Departments: An Empirical Analysis Based On Survey Questionnaires," Economic Papers, The Economic Society of Australia, vol. 22(2), pages 30-46, 06.
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