Efficiency of Education Expenditure in Ethiopia: The Case of Selected Public Universities (Data Envelopment Analysis Model)

doi:10.7176/jep/12-28-02

Abstract

This study analyzed the efficiency of education expenditure in Ethiopian public universities. The research applied descriptive research design and mixed research approach. Both secondary and primary data types were used. The target population of this research was all public universities under the Ministry of Science and Higher Education (MoSHE). Primary data were gathered from the MoSHE and public universities selected for the study and secondary data were obtained from different official sources. Data Envelopment Analysis was used as a method of data analysis to examine the efficiency of education expenditure. The performance measurement pactices of universities were analyzed descriptively. The study found that performance measurement practice is in place at the university level with identified criteria. Concerning the efficiency level, the majority of the universities were efficient relative to other universities in the pool. The researchers recommend the revision of performance measurement indicators to include international practice and a regular performance measurement need to be undertaken by the ministry to create competition among universities. In addition, we recommend to university management to get the best experience from other universities about resource management as per the peer result. Keywords: Efficiency, data envelopment analysis, slacks and peer DOI: 10.7176/JEP/12-28-02 Publication date: October 31 st 2021

Highlights

Higher education has a fundamental role in both the economic growth and development of any nation in the world
This section is about the performance measurement practice of each public university and it assessed how the ministry of science and higher education measures the performance of universities administered under the ministry
According to the interview made with higher officials of Ministry of Science and Higher Education (MoSHE); the draft of Key performance indicators (KPI) was initiated based on international experience and local information needs of users

Summary

Introduction

Higher education has a fundamental role in both the economic growth and development of any nation in the world. A nation with highly educated and skilled people has a great chance to advance to a better living standard (Yun & Yusoff, 2019). Higher education provides proper skills and knowledge to the people necessary for a country's economic development through technology innovations and the development of new ideas (Kipesha & Msigwa, 2013). The development of education is a symbol of national strength and the level of economic and social development. The objective of higher education consists of providing adequate experts who are capable to transfer knowledge to the students and increasing the general theoretical and professional levels. Since Public spending efficiency plays a key role in economic development, a transparent government spending practice is the cornerstone to the government (Chan & Karim, 2012)

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