Efficiency and productivity change in the English higher education sector from 1996/97 to 2004/5

In this study we use a distance function approach to derive Malmquist productivity indexes for 112 English higher education institutions (HEIs) over the period 1996/97 to 2004/5. The analysis shows that HEIs have experienced an annual average increase in productivity of 1 per cent. Further investigation reveals that HEIs have enjoyed an annual average increase in technology of 6 per cent combined with a decrease in technical efficiency of 5 per cent. Rapid changes in the higher education sector appear to have had a positive effect on the technology of production but this has been achieved at the cost of lower technical efficiency.