Efficiency and productivity of SUCs in the Philippines / Maria Cristina Condez

Dissertation (Doctor of Philosophy major in Development Administration) -- University of Southeastern Philippines, June 2024.

The study employs Data Envelopment Analysis (DEA) and the
Malmquist Index to evaluate the efficiency and productivity of 101 State
Universities and Colleges (SUCs) in the Philippines. Using panel data
spanning 2017 to 2021, the research adopts both Constant Returns to
Scale (CRS) and Variable Returns to Scale (VRS) models. It examines two
inputs-faculty] numbers and financial resources (personnel services,
Maintenance and Other Operating Expenses or MOOE, and capital
outlay)-and assesses two outputs-the total number of student
enrollments and graduates. Results indicate that among the 101 SUCs,
only 8 are considered efficient under the CRS model, while 11 are efficient
under the VRS model. This discrepancy arises from the differing
methodologies, with CRS generally yielding lower efficiency scores and
VRS higher ones. Technical efficiency (TE) exhibits significant variability,
with average scores ranging from 50% to 63%, and most SUCs operating
at approximately 83% of their optimal scale. Similarly, allocative efficiency
(AE) varies, with mean AE ratios of 0.4019 under CRS and 0.4836 under
VRS, indicating that resources are allocated at only 40% to 48% of optimal efficiency. The study also finds modest productivity improvements,
primarily driven by technological advancements, though with considerable
variation among SUCs. It underscores the importance of strategic
interventions to address inefficiencies, optimize resource allocation, and
enhance educational quality. These interventions should focus on
transparent resource allocation, administrator skill development, and
robust quality assurance systems. Furthermore, the study suggests future
research should concentrate on longitudinal studies to monitor progress
and assess the impacts of interventions on SUC efficiency and
effectiveness.