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Measuring productivity change in higher education: an application of Hicks–Moorsteen total factor productivity index to Malaysian public universities

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  • Amir Arjomandi
  • Mad Ithnin Salleh
  • Abbas Mohammadzadeh
Abstract
This paper offers an in-depth analysis of efficiency and productivity changes using the Hicks–Moorsteen total factor productivity index, in the context of higher education institutions. Unlike the Malmquist method, this approach makes no assumptions about firms' returns to scale conditions. We assume that the production technology exhibits variable returns to scale, which is more plausible than the constant returns to scale assumption, because universities usually operate at suboptimal scales. Three major groupings of Malaysian public universities are used in our case study: research, comprehensive, and focused universities. The results show that technical efficiency has improved after the 2007 National Higher Education Strategic Plan within all the three university groupings.

Suggested Citation

  • Amir Arjomandi & Mad Ithnin Salleh & Abbas Mohammadzadeh, 2015. "Measuring productivity change in higher education: an application of Hicks–Moorsteen total factor productivity index to Malaysian public universities," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(4), pages 630-643, October.
    • Handle: RePEc:taf:rjapxx:v:20:y:2015:i:4:p:630-643
    DOI: 10.1080/13547860.2015.1045323
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    Cited by:

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    2. Arjomandi, Amir & Dakpo, K. Hervé & Seufert, Juergen Heinz, 2018. "Have Asian airlines caught up with European Airlines? A by-production efficiency analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 389-403.
    3. Badunenko, Oleg & Myeki, Lindikaya W, 2023. "Multidimensional Analysis of Attainment of Higher Education Goals in South Africa’s Public Universities: Access, Quality, Diversity, Success and Efficiency," MPRA Paper 121565, University Library of Munich, Germany.
    4. Drebee, Hayder Abbas & Abdul Razak, Nor Azam, 2018. "Measuring the Efficiency of Colleges at the University of Al-Qadisiyah-Iraq: A Data Envelopment Analysis Approach," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 153-166.
    5. Badunenko, Oleg & Myeki, Lindikaya W, 2023. "Multidimensional Analysis of Attainment of Higher Education Goals in South Africa’s Public Universities: Access, Quality, Diversity, Success and Efficiency," MPRA Paper 121570, University Library of Munich, Germany.
    6. López-Torres, Laura & Prior, Diego, 2022. "Long-term efficiency of public service provision in a context of budget restrictions. An application to the education sector," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    7. Aparicio, Juan & López-Torres, Laura & Santín, Daniel, 2018. "Economic crisis and public education. A productivity analysis using a Hicks-Moorsteen index," Economic Modelling, Elsevier, vol. 71(C), pages 34-44.
    8. Carolyn–Dung T. T. Tran & Renato A. Villano, 2017. "Input Rigidities and Performance of Vietnamese Universities," Asian Economic Journal, East Asian Economic Association, vol. 31(3), pages 253-273, September.
    9. Renato A. Villano & Carolyn‐Dung T. T. Tran, 2021. "Survey on technical efficiency in higher education: A meta‐fractional regression analysis," Pacific Economic Review, Wiley Blackwell, vol. 26(1), pages 110-135, February.

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