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Relative Efficiency of Universities Using Data Envelopment Analysis: Theory and Implications for the Arab Countries
Abstract
The purpose of this chapter is to evaluate the relative efficiency of universities using data envelopment analysis (DEA). The authors developed a map of efficiency indicators of universities depending on the three main functions of any university; i.e., teaching, research, and community service. Using hypothetical data of 27 universities in a given country, the authors developed the inputs and outputs for each of the three main functions of the universities. The DEA revealed some interesting results concerning the efficient and inefficient universities, and how to improve the inefficient ones. Moreover, the DEA was better than the traditional accounting method for performance evaluation. The authors concluded with some recommendations to improve efficiency of universities through the teaching, research, and community service activities. Finally, some implications for the Arab countries were discussed.
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