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

• Main Author: Dayal TALUKDER
• Format: Article
• Language: English
• Published: Saphira Publishing 2011-10-01
• Series: Oeconomics of Knowledge
• Subjects: International education; total factor productivity growth; productivity; efficiency; private and public education providers; New Zealand
• Online Access: https://sites.google.com/site/oeconomicsofknowledge/v3_i4_4q_2011_dt.pdf

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.