ETIKONOMI
Vol 20, No 1 (2021)

The Determinants of the Technical Efficiency of Secondary Schools in Malaysia: A Panel Evidence

Rozita Baba (Faculty of Islamic Studies, University College of Islam Melaka, Melaka)
Zulkefly Abdul Karim (Faculty of Economics & Managemant, National University of Malaysia, Selangor, Malaysia)
Mariani Abdul Majid (Faculty of Economics & Managemant, National University of Malaysia, Selangor, Malaysia)
Noorasiah Sulaiman (Faculty of Economics & Managemant, National University of Malaysia, Selangor, Malaysia)



Article Info

Publish Date
22 Feb 2021

Abstract

This study aims to identify the level of technical efficiency of secondary schools and its determinants using the data of 626 Malaysian secondary schools over 2010-2014. Two estimation techniques have been used; the first step is to estimate the school's efficiency score by employing a Data Envelopment Analysis approach. In the second step, we examine the factors affecting the schools' efficiency using a static panel data analysis. The main findings revealed that secondary education is technically inefficient, and on average, the schools can increase their output by 33% using the same resources. Secondary schools in rural areas and less-developed states indicate a better technical efficiency level than schools in urban areas and developed states. Factors that affect technical efficiency are school size, per capita income, and average wage.  The findings suggest that the school may perform better by increasing the schools' size by having more classes.  The opportunities to increase residents' and households' income may help the areas perform better than others.JEL Classification: H5, H75How to Cite:Baba, R., Karim, Z. A., Majid, M. A., & Sulaiman, N. (2021). The Determinants of The Technical Efficiency of Secondary Schools in Malaysia: Panel Evidence. Etikonomi, 20(1), 169 – 184. https://doi.org/10.15408/etk.v20i1.17204.

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Journal Info

Abbrev

etikonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Etikonomi is a peer-reviewed journal on Economics, Business and Management by Faculty of Economic and Business State Islamic University (UIN) Syarif Hidayatullah Jakarta. FOCUS This journal focused on economics, business, and management studies and present developments through the publication of ...