Technical efficiency of Makerere University 1997 - 2007

Abstract

Makerere University has since the mid 1990s experienced an increase in student enrolment which has not been accompanied by a proportionate increase in other corporate factors. The student enrolment has increased amidst declining government financing, inadequate academic staff and a slow expansion of the teaching space. The current study set out to investigate the technical efficiency of Makerere over the period 1997 – 2007. It also set out to investigate the total factor productivity growth of Makerere University faculties over the years 2003 – 2007. To address these objectives, the Data Envelopment Analysis and Malmquist productivity index methods were employed and the results were analyzed using DEAP 2.1 software program developed by Coelli (1996).

The data used in the analysis was obtained from the Academic Registrar, Accounts, Library, Estates, Planning and Human Resource Office records of Makerere University. The main inputs used in the study were student enrolment, teaching space and staffing. The main outputs were undergraduate and postgraduate completion rate.

Results from technical efficiency indicate that Makerere University can save resources of up to 5.5 percent to produce the current level of output. Increase in enrolment accompanied by increase in graduation rate increases University efficiency. Results from scale efficiency indicate that there is still room for Makerere University to achieve improved efficiency by expanding her scale of operation by 13.9 percent of the current operation level. The results from the Malmquist index indicate the existence of pure technical and scale inefficiencies as well as total factor productivity regress. Much as Makerere is experiencing total factor productivity regress of 3.3 percent, this can be offset if the University continues with the positive trends of innovations (technical change). The utilization of teaching space influences university efficiency. As policy, there is need for improved efficiency at Makerere both at the faculty and University level. University managers may need to use DEA in the formulation of their education management plans especially in determining the university optimal scale of operation and for benchmarking purposes of the University and faculty efficiency over time.