Directly Under The Ministry Of Education, Colleges And Universities In China X (low) Efficiency Analysis

In our country, the input to higher education is badly inadequate, while the utility of higher education resources is far from efficient. So this paper puts emphasis on problems in development of higher education in order to seek the ways of improving the efficiency.The X-inefficiency is a phenomenon that the education resources are not fully utilized. Some of the teaching staff are unwilling to teach, pay more attention on the quantity of class than on its quality; some of the administrative personnel treat their duty sloppily; In the mean time, the improper organization, the lack of competition and the prevalence of bureaucracy system lead to the inactivity of the teaching staff and thus results in the waste of personnel resources and X-inefficiency of universities.In the empirical part, this study uses Stochastic Frontier Approach in the framework of a quadratic cost function, gathers data information from 30 universities directly under Ministry of Education in China, and estimates the impact of external and internal educational characteristics on cost efficiency.Then the study analyzes the possible causes of the X-inefficiency of universities. The existence of the X-efficiency of universities is due to the individual's behavior characters and organization of the universities. In the last part, the study proposes some advice against the X-inefficiency of universities:legal status of universities should be clear; the relationship between clients and agents should be regulated, and an effective mechanism of encouragement and control should be built up. Competitive pressures within the university should be increased, and establishes the Quality Assurance System.