Efficiency Measurement with Network DEA: An Application to Sustainable Development Goals 4

Year 2019, Volume: 6 Issue: 3, 415 - 435, 15.10.2019

Deniz Koçak , Hasan Türe , Murat Atan

https://doi.org/10.21449/ijate.539487

Cited By: 6

Abstract

Education is the core of the factors that
improved people for a better lifestyle and increases the level of society’
development. Quality education is one of the most vital goals of Sustainable
Development Goals (SDGs) due to actualizing these factors. Using relational
network data envelopment analysis (DEA), which have three interrelated
substages, this current paper computes the educational economy efficiency of
the Organisation for Economic Co-operation and Development (OECD) countries
bearing in mind the characteristics related to SDGs. The contribution of our
study is the use of a novel approach to computing the educational economy
efficiency using relational network DEA with GAMS. Even though some interesting
differences reveal in the efficiency of the countries, the findings show that
countries with high-efficiency scores are clustered around countries like
Latvia, Slovenia, and Korea.

Keywords

relational network DEA, sustainable development goals 4, educational economy

Efficiency Measurement with Network DEA: An Application to Sustainable Development Goals 4

Abstract

Education is the core of the factors that improved people for a better lifestyle and increases the level of society’ development. Quality education is one of the most vital goals of Sustainable Development Goals (SDGs) due to actualizing these factors. Using relational network data envelopment analysis (DEA), which have three interrelated substages, this current paper computes the educational economy efficiency of the Organisation for Economic Co-operation and Development (OECD) countries bearing in mind the characteristics related to SDGs. The contribution of our study is the use of a novel approach to computing the educational economy efficiency using relational network DEA with GAMS. Even though some interesting differences reveal in the efficiency of the countries, the findings show that countries with high-efficiency scores are clustered around countries like Latvia, Slovenia, and Korea.

Keywords

Relational network DEA, Sustainable development goals 4, Educational economy

References

• Abbott, M., & Doucouliagos, C. (2003). The efficiency of Australian universities: a data envelopment analysis. Economics of Education Review, 22, 89 - 97. https://doi.org/10.1016/S0272-7757(01)00068-1
• Afonso, A., & Aubyn, M. S. (2005). Non-parametric approaches to education and health efficiency in OECD countries. Journal of Applied Economics, 8, 227-246.
• Afonso, A., & Aubyn M. S. (2006). Cross-country efficiency of secondary education provision: A semi-parametric analysis with non-discretionary inputs. Economic Modelling 23, 476-491.
• Afonso, A., Schuknecht, L., & Tanzi, V. (2005). Public sector efficiency: An international comparison. Public Choice, 123, 321-347.
• Aristovnik, A. (2012). The impact of ICT on educational performance and its efficiency in selected EU and OECD countries: A non-parametric analysis. Available at SSRN: https://ssrn.com/abstract=2187482 or http://dx.doi.org/10.2139/ssrn.2187482
• Aubyn, M. S. (2003). Evaluating efficiency in the Portuguese education sector. Economia, 26, 25-51.
• Barra, C., Lagravinese, R., & Zotti, R. (2018). Does econometric methodology matter to rank universities? An analysis of Italian higher education system. Socio-Economic Planning Sciences, 62, 104-120.
• Chen, Z., & Wu, Y. (2007). The relationship between education and employment: A theoretical analysis and empirical test. Frontiers of Economics in China, 2 (2), 187-211. https://doi.org/10.1007/s11459-007-0010-4
• Ciro, J. A., & Garcia, A. T. (2018). Economic efficiency of public secondary education expenditure: How different are developed and developing countries?. Desarrollo Sociedad, 80, 119-154.
• Domar, E. D. (1946). Capital expansion, rate of growth, and employment. Econometrica, 14 (2), 137-147.
• Griggs, D., Stafford-Smith, M., Gaffney, O., Rockström, J., Öhman, M. C., Shyamsundar, P., Steffen, W., Glaser, G., Kanie, N., & Noble, I. (2013). Policy: Sustainable development goals for people and planet. Nature, 495, 305-307.
• Guironnet, J. P., & Peypoch, N. (2018). The geographical efficiency of education and research: The ranking of U.S. universities. Socio-Economic Planning Sciences, 62, 44-55.
• Gupta, S., & Verhoeven, M., (2001). The efficiency of government expenditure experiences from Africa. Journal of Policy Modelling, 23, 433-467. https://doi.org/10.1016/S0161-8938(00)00036-3
• Hanushek, E. A., & Kimko, D. D. (2000). Schooling, labor force quality, and the growth of nations. American economic review, 90 (5), 1184-1208.
• Hopkins, C., & McKeown, R. (2002). Education for sustainable development: An international perspective. In Tilbury, D., Stevenson, R. B, Fien J. & Schreuder, D. (Eds.), Education and Sustainability: Responding to the global challenge, Commission on Education and Communication, IUCN, Gland, Switzerland and Cambridge, UK.
• Jafarov, E., & Gunnarsson, V. (2008). Government spending on health care and education in Croatia: Efficiency and reform options. International Monetary Fund, IMF Working Paper, WP/08/136.
• Johnes, J. (2006). Data envelopment analysis and its application to the measurement of efficiency in higher education. Economics of Education Review, 25 (3), 273-288. https://doi.org/10.1016/j.econedurev.2005.02.005
• Johnes, J., Portela, M., & Thanassoulis, E. (2017). Efficiency in education. Journal of the Operational Research Society, 68, 331 - 338. https://doi.org/10.1016/j.econedurev.2005.02.005
• Kao, C. (2009). Efficiency decomposition in network data envelopment analysis: A relational model. European Journal of Operational Research, 192, 949-962. https://doi.org/10.1016/j.ejor.2007.10.008
• Kashim, R., Kasim, M. M., & Abd Rahman, R. (2017). Measuring efficiency of a university faculty using an extended hierarchical network dea model: A framework. Advanced Science Letters, 23 (9), 9090-9093
• Landau, D. (1983). Government expenditure and economic growth: A cross-country study. Southern Economic Journal, 49 (3), 783-792.
• Lavrinovicha, I., Lavrinenlo, O., & Teivans-Treinovskis, J. (2015). Influence of education on unemployment rate and incomes of residents. Procedia Social and Behavioral Sciences, 174 (12), 3824-3831. https://doi.org/10.1016/j.sbspro.2015.01.1120
• Le Blanc, D. (2015). Towards integration at last? The sustainable development goals as a network of targets. Sustainable Development, 23, 176-187. doi: 10.1002/sd.1582
• Lee, J.-W., & Barro, R. J. (2001). Schooling quality in a cross-section of countries. Economica, 68 (272), 465-488.
• OECD (2012). Portugal, Country Note, Education at a Glance 2012: OECD Indicators Publishing, doi: 10.1787/eag-2012-en.
• Qin, X., & Du, D. (2018). Measuring universities’ R&D performance in China’s provinces: A multistage efficiency and effectiveness perspective. Journal Technology Analysis & Strategic Management, 30(12), 1392-1408. doi: 10.1080/09537325.2018.1473849
• Ramzi, S., Afonso, A. & Ayadi, M. (2016). Assessment of efficiency in basic and secondary education in Tunisia: A regional analysis. International Journal of Educational Development, 51, 62-76.
• Riddell, A. R. (1993). The evidence on public/private educational trade-offs in developing countries. International Journal of Educational Development, 13 (4), 373-386.
• Ruggiero, J. (2006). Measurement error, education production and data envelopment analysis. Economics of Education Review, 25, 327 - 333. https://doi.org/10.1016/j.econedurev.2005.03.003
• Sterling, S. (2001). Sustainable Education: Re-Visioning Learning and Change. Schumacher Briefings. Schumacher UK, CREATE Environment Centre, Seaton Road, Bristol, BS1 6XN, England.
• Sylwester, K. (2002). Can education expenditures reduce income inequality? Economics of Education Review, 21 (1), 43–52. https://doi.org/10.1016/S0272-7757(00)00038-8 UNICEF (2016). The state of the world’s children, a fair chance for every child. Available online: https://www.unicef.org/publications/files/UNICEF_SOWC_2016.pdf (9 July 2018)
• United Nations (2015). Transforming our world: The 2030 agenda for sustainable development. Available online: http://www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E (5 December 2018)
• United Nations (2018). Sustainable development goal 4 and its targets, Available online: https://www.un.org/sustainabledevelopment/education (10 November 2018).
• Wasylenko, M., & McGuire, T. (1985). Jobs and taxes: The effect of business climate on states’ employment growth rates. National Tax Journal, 38(4), 497-511.
• Worthington, A. C. (2001). An empirical survey of frontier efficiency measurement techniques in education. Education Economics, 9 (3), 245-268. doi: 10.1080/09645290110086126
• Yang, G.-L., Fukuyama, H., & Song Y.-Y. (2018). Measuring the inefficiency of Chinese research universities based on a two-stage network DEA model. Journal of Informetrics, 12 (1), 10-30. https://doi.org/10.1016/j.joi.2017.11.002