Assessing University of Education, Winneba Production Economies of Scale and Scope: A Further Decomposition

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue XI, November 2019 | ISSN 2454–6186

Assessing University of Education, Winneba Production Economies of Scale and Scope: A Further Decomposition

Isaac Addai

 Department of Accounting Studies, College of Technology Education, University of Education, Winneba, P.O.BOX 1277, Kumasi, Ghana

Abstract: – The study, paper empirically estimates University of Education, Winneba (UEW) multi-product costs using the flexible quadratic cost function. Statistical results suggest that there are both economies of scale and scope in UEW multi-production. Furthermore, there exist product-specific diseconomies of scope for Fulltime output suggesting that it is more costly or cost disadvantage for UEW producing that output in isolation from other outputs. There exist product-specific economies of scope for Distance and Sandwich outputs respectively suggesting cheaper joint production of each output.

Keywords: – Economies of scale Economies of scope Multi-product Cost function

I. INTRODUCTION

Higher Education Institutions (HEIs)are complex organisations, characterised as they are by their multi-product nature. HEIs as multi-product firms are generally agreed to produce two main outputs, namely teaching and research, Cohn and Cooper (2004). Verry and Layard (1975) also as far back recognised what they referred to as the third leg output encompassing inter alia, the provision of advice and other services to businesses, the storage and preservation of knowledge, and the provision of a source of independent comment on public issues. The academic literature in recent times also pointed out that HEIs could contribute to the economic growth of the territories in which they operate, Huggins, Johnston and Stride (2012).This paper also opines that in developing countries, HEIs also serve as a ‘stopping gap’ of holding on to the teaming unemployed. For example with an estimated 320,000 HEIs students in 2015, majority of these potential job seekers will not participate in the job market for at least the next three years sparing the Government of Ghana (GOG) which is the largest employer of these teaming formal job-seekers for non-existent jobs.

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