Cost Efficiency Analysis of Public Higher Education Institutions in Uzbekistan

This study examines the cost efficiency of public higher education institutions (HEIs) in Uzbekistan during the period 2000–2013, when the financing structure was gradually shifting from strong dependence on government funding toward greater reliance on tuition revenue. Using stochastic cost frontier analysis, the study evaluates 58 public HEIs and a balanced panel of 812 institution-year observations.

The results show that average cost efficiency remained relatively moderate, although institutional efficiency improved over the 14-year study period. HEIs receiving a larger share of government funding were generally less cost efficient than institutions relying more heavily on tuition revenue. The findings suggest that greater financial responsibility may have encouraged more careful use of institutional resources.

These historical results remain relevant as Uzbekistan's higher education system has expanded rapidly since 2017. By 2025, student enrolment had reached approximately 1.7 million and higher education coverage exceeded 44%. The study therefore provides a useful historical baseline for understanding cost efficiency during Uzbekistan's continuing higher education and financing reforms.

Cost efficiency, stochastic frontier analysis, higher education finance

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