Efficiency of Public and Private Universities in Bangladesh: A Comparative Approach using Data Envelopment Analysis

Abstract

The aim of this study is to measure the efficiency of higher educational institutions and investigate the comparative efficiency of public and private higher education in Bangladesh. Using data envelopment analysis (DEA), technical efficiency of 15 public universities and 20 private universities of Bangladesh are evaluated over the period 2008-2018. The empirical results reveal that public universities on an average operate between 56.2 to 80.7 percent level of technical efficiency while the private universities between 49.1 to 77.6 percent level over the study period. That is, universities in Bangladesh, on an average, do not operate efficiently in terms of resource utilization. Over the years only 33% public universities and 25% private universities are found efficient. The inefficient universities can improve their efficiency by utilizing full capacity of the inputs or reducing the amount of inputs at the estimated inefficiency rate of the respective universities. Findings also show that the public universities have the scope of producing 1.24 to 1.78 times and private universities 1.28 to 2.04 times as much output from the same level of inputs. Special monitoring by the regulatory authorities is required for inefficient universities to enhance their efficiency level.