The main aim of this study is to develop theoretical framework that can investigate the measurement of productivity changes in higher education sector particularly in the Malaysian community colleges institutions from 2007 to 2010. By measuring technical efficiency and productivity changes among community colleges in Malaysia, this study aims to address three main research questions related to the college community sector: a) What is the mean efficiency score of college community institutions in Malaysia? b) What is the total factor productivity (TFP) change for Malaysia’s community colleges institutions? c) Has the implementation of the National Higher Education Strategic Plan (NHESP) led to improvements in the efficiency and productivity of the college community sector? In this study, a non-parametric approach known as Data Envelopment Analysis (DEA) is applied to the inputs and outputs of Malaysian community colleges to analyses empirically their technical efficiency and productivity. Furthermore, this study is also the first that intend to build theoretical frameworks that employ a comprehensive decomposition of the Hicks-Moorsteen TFP index, developed and explore the consequences of NHESP on productivity changes in Malaysian community college over the period of 2007-2010.
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