Efficiency analysis on private universities: the case of Taiwan

Because Taiwan's population of children has decreased and the number of university is too many, all universities in the country are facing fierce competition. This study uses the Super Slacks-based Measure (SBM) model and Malmquist productivity index to evaluate the performance of Taiwan's 20 private universities. Some conclusions are found as follows: (1) If academic research is emphasized in universities, then the efficiency values of them will increase. (2) If a university is far from downtown, then it can set up a continuing and cooperative education center downtown so as to upgrade its average productivity. (3) The universities in Taiwan with high average productivity have high efficiency. (4) A traditional private university in Taiwan will be caught up by newly-established private universities if the traditional private university has not made any progress. Under the structure of the World Trade Organization (WTO), all countries will open up their education market in the future, and Taiwan is not an exception. We hope that Taiwan's education experience can provide a reference for all the countries in the world.