Economic Sustainability and Productivity Growth of International Education in New Zealand

By Dayal Talukder.

Published by The Sustainability Collection

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Article: Print $US10.00
Article: Electronic $US5.00

This study has investigated total factor productivity (TFP)-growth of New Zealand’s international education with a view to analysing its economic sustainability. It has used secondary data to calculate the DEA-based Malmquist productivity index for measuring TFP-growth of international education. It has also used the OLS regression model to estimate Cobb-Douglas production function for determining the elasticity of output (GDP) contributed by international education. The study found that New Zealand’s international education sector experienced a positive TFP-growth during 1999-2004 but the TFP-growth had started declining in 2005 and continued to fall through 2010. Both TFP and regression models indicated that this sector exhibited, on an average, a decreasing return to scale during the period 1999-2010. This sector is not economically sustainable because of a current declining trend in TFP-growth caused by technological contraction. Similarly, the output growth is determined by labour not by capital. The government should formulate policy to improve TFP-growth in this sector. The findings of this study may be of interest to researchers, development practitioners and policy makers.

Keywords: Economic Sustainability, International Education, Total Factor Productivity, New Zealand

The International Journal of Environmental, Cultural, Economic and Social Sustainability, Volume 7, Issue 6, pp.13-28. Article: Print (Spiral Bound). Article: Electronic (PDF File; 1.197MB).

Dayal Talukder

Lecturer, Business Department, ICL Business School, Auckland, Auckland, New Zealand

Currently, he is pursuing his PhD at Auckland University of Technology (AUT). He has been teaching at ICL Business School of Auckland in New Zealand since October 2010. His Research interests include the following areas: trade policy, regionalism, total factor productivity, international education and contemporary development issues. *The author is grateful to conference participants (The Seventh International Conference on Environmental, Cultural, Economic and Social Sustainability held on 5-7 January 2011 at the University of Waikato in Hamilton, New Zealand) for their questions and comments and to his colleagues, Brent Hawkins and Naomi Pocock, for their valuable comments and suggestions. He is also grateful to Ewen Mackenzie-Bowie, the Principal and Director of ICL Business School for funding his conference participation.

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