Influence of Constant Returns to Scale and Variable Returns to Scale Data Envelopment Analysis Models in ICT Infrastructure Efficiency Utilization

Abstract

A lot of research has been done using Data Envelopment Analysis (DEA) to measure efficiency in Education. DEA has also been used in the field of Information and Communication Technology for Development (ICT4D) to investigate and measure the efficiency of Information and Communication Technology (ICT) investments on Human Development. Education is one of the major components of the Human Development Index (HDI) which affects the core of Human Development. This research investigates the relative efficiency of ICT Infrastructure Utilization on the educational component of the HDI in order to determine the viability of Learning Analytics using DEA for policy direction and decision making. A conceptual model taking the form of a Linear Equation was used and the Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) models of the Data Envelopment Analysis were employed to measure the relative efficiency of the components of ICT Infrastructure (Inputs) and the components of Education (Outputs). Results show a generally high relative efficiency of ICT Infrastructure utilization on Educational Attainment and Adult Literacy rates, a strong correlation between this Infrastructure and Literacy rates as well, provide an empirical support for the argument of increasing ICT infrastructure to provide an increase in Human Development, especially within the educational context. The research concludes that DEA as a methodology can be used for macroeconomic decision making and policy direction within developmental research.