Performance evaluation of the efficiency of Philippine Private Higher Educational Institutions: application of frontier approaches

This paper evaluates the efficiency performance of Philippine Private Higher Educational Institutions (PHEIs), using frontier approaches known as data envelopment analysis – Malmquist indices and stochastic frontier analysis. The sample consists of 30 private educational institutions, which were granted autonomy over the time period 1999–2003, with a total of 150 observations. The paper also analyzes whether technical inefficiency is systematically related to age, ownership (private sectarian versus private non‐sectarian), and autonomy status. Significant new findings show that higher technological progress boosted the higher productivity growth of the majority of PHEIs (about 66.67%). We also found that age and ownership have positive and statistically significant effects on its technical inefficiency. PHEIs obtained a technical efficiency of 71.2%, and therefore need to increase their output revenues by 28.8% to be efficient. These new findings contribute significantly to educational performance.