Cost Efficiency Analysis of Public Higher Education Institutions in Uzbekistan

Kholmuminov, Shukhrat and Wright, Robert E (2017) Cost Efficiency Analysis of Public Higher Education Institutions in Uzbekistan. Discussion paper. University of Strathclyde, Glasgow.

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Abstract

Over the last decade, the revenue structure of public higher education institutions (HEIs) in Uzbekistan has changed from full government funding to mostly tuition funding. In this paper, a stochastic cost frontier analysis is used in order to examine whether the institutional financial resources obtained mostly from tuition revenue have been utilised efficiently or inefficiently at 58 public HEIs during the period of 2000 to 2013. The Battese and Coelli (1995) method is applied to measure the influences of institution, staff and student characteristics on cost efficiency of the universities. According to mean efficiency scores, the Uzbek universities are not remarkably cost efficient in producing education and research outputs, although the significant improvements in the efficiency followed throughout the sample period. Findings also reveal that HEIs with a greater share of government allocations are less cost efficient relative to those institutions with a smaller share of government allocations.

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