A Two Stage Technical Efficiency of Primary Schools in Ethiopia: The Case of Harari Regional State

Abstract

This study aims to estimate relative technical and scale efficiency of primary schools in Harari Region. To measure change in productivity of school for the period 2013-2019 and to determine factors that affecting the technical inefficiency of schools, quantitative approach with a two stage Data Envelopment Analysis (DEA) employed for measuring technical efficiency of schools. Malmquist Total Factor Productivity (MTFP) index was implemented to determine overall productivity growth of school within the given period. Censored Tobit regression model was used to determine factors affecting school’s inefficiency. The result of the Constant Return to Scale DEA model shows that 10(21.7%) schools were found technically efficient, while 36(78.3%) were inefficient. The VRS DEA model indicated that fourteen (30.4%) schools were technically efficient and thirty two (69.6%) schools were technically inefficient. Out of the total schools, 47.8% schools were found to be scale efficient, while 52.2% were scale inefficient. Further, non-government schools have higher efficiency scores (99.6 %) than their counterpart government schools (91.6%). The Tobit model regression result indicated that school’s ownership and location have a significant and negative sing, while coefficients of student-teacher ratio, student-class ratio and teacher’s qualification and experiences had a positive singe with inefficiency of schools. Keywords: Data envelopment analysis, technical efficiency, productivity, Tobit model. DOI: 10.7176/JEP/13-25-01 Publication date: September 30 th 2022