Factors Determining the Efficiency of Higher Education in the European Union and Turkey

Higher education institutions that shape today's information society are important actors in providing economic development and growth and competitive advantage to countries in the international arena, as well as in providing prestige and a high level of income to individuals. In this regard, besides the educational service quality, innovation capacity, R&D potential, cooperation with industry and the roles in the regional development of higher education institutions, it is also important to investigate their efficiency in academic and research activities and the factors that determine this efficiency. This study aims to analyze Turkey's and 17 of the EU member states' higher education efficiency and the effects of various factors on the efficiency scores. To these aims, Data Envelopment Analysis and Tobit regression model are employed respectively. According to the findings, an increase in the ratio of public expenditure in higher education to GDP, in the number of students per academic and in the number of academics negatively affect the efficiency scores. However, the increase in the employment rate of higher education graduates, in the ratio of higher education graduates to the total population and in the life satisfaction of the individuals with higher education positively affects the efficiency scores.