Analysis of the Determinants of Universities Efficiency in Turkey: Application of the Data Envelopment Analysis and Panel Tobit Model

AbstractThis paper builds on a two- stage Data Envelopment Analysis to determine factors on the efficiency of universities in Turkey in 2006-2010. The first stage is concerned with data envelopment analysis to measure the efficiency of the universities. This is followed by factors that affect the efficiency of the universities. The results of the model demonstrate that, the effect of project allocations found to be insignificant. Additionally, number of students per academic has a positive effect on relative efficiency of universities in Turkey. It is seen the highest increase at doctorate level. Employment and number of publications, as expected, have positive effect on efficiency. Because the central government budget appropriations has a negative effect on efficiency, the higher education institutions in Turkey may lead to the search for alternative financing such as Triple Spiral model in co-operation with the private sector, R&D support, project support, counselling, within the framework of university-industry-government