Competition and Efficiency: Overseas Students and Technical Efficiency in Australian and New Zealand Universities

36 Pages Posted: 13 Sep 2007

See all articles by Hristos Doucouliagos

Hristos Doucouliagos

Deakin University - School of Accounting, Economics and Finance

Malcolm Abbott

KPMG, Australia

Date Written: 2007

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.

Keywords: Competition, technical efficiency, Australian universities

JEL Classification: H4, H52, D21, C23

Suggested Citation

Doucouliagos, Chris (Hristos) and Abbott, Malcolm, Competition and Efficiency: Overseas Students and Technical Efficiency in Australian and New Zealand Universities (2007). Available at SSRN: https://ssrn.com/abstract=1014277 or http://dx.doi.org/10.2139/ssrn.1014277

Chris (Hristos) Doucouliagos (Contact Author)

Deakin University - School of Accounting, Economics and Finance ( email )

Burwood, Victoria 3215
Australia

Malcolm Abbott

KPMG, Australia ( email )

House 161 Collins Street
Melbourne VIC 3000
Australia

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