UNIVERSITY OF ECONOMICS ERASMUS UNVERSITY ROTTERDAM HO CHI MINH CITY INSTITUTE OF SOCIAL STUDIES VIETNAM THE NETHERLANDS VIETNAM – THE NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS IMPACTS OF SCHOOL RESOURCES ON TRAINING OUTCOME: A CASE STUDY ON THREE SOUTHERN UNIVERSITIES SUPERVISED BY MOIT BY VO XUAN DUC MASTER OF ARTS IN DEVELOPMENT ECONOMICS HO CHI MINH CITY, July 2016 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS INSTITUTE OF SOCIAL STUDIES HO CHI MINH CITY THE HAGUE VIETNAM THE NETHERLANDS VIETNAM - NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS IMPACTS OF SCHOOL RESOURCES ON TRAINING OUTCOME: A CASE STUDY ON THREE SOUTHERN UNIVERSITIES SUPERVISED BY MOIT A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS By VO XUAN DUC Academic Supervisor: Dr. NGUYEN HUU DUNG HO CHI MINH CITY, July 2016 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CERTIFICATION “I certify this thesis has not been submitted for other degrees. I certify my best ability and knowledge, any guidance received in preparing of this thesis have been acknowledged” Signature Vo Xuan Duc Date: December 10th, 2016 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT A completed study would not be done without the assistance. Therefore, the author who conducted this dissertation gratefully gives acknowledgement to all the support and motivation during the time of doing research as a requirement of completing my dissertation of Development Economics.
First of all, I would like to express my deepest gratitude and gratefulness to all reputable instructors in Vietnam Netherlands Program, who helped me to achieve the knowledge through interesting lessons, useful assignment, utility seminars and salutary information. I would like to express my deep and sincere thanks to my advisor Dr. Nguyen Huu Dung for the continuous support of my study and research, for his patience, motivation, enthusiasm, and immense knowledge. I appreciate all his contributions of time, ideas, and funding to make my dissertation experience productive and stimulating.
I am grateful to all the staffs of Vietnam Netherlands Program’s office, have helped me to access books, references and necessary documents during the learning process. My deeply thanks to all my friends during time I study in this great programme. Their kindly help, care, motivation gave me strength and lift me up all the trouble for my study. 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT This study investigates the impact of school resources on training outcome, based on the relationship between the annual number of graduates and related factors.
We examine that impact for understanding about the determinants could lead to the increase or decrease on the annual number of good graduates beyond school decisions about strategic adjustment of financial nvestments. The data resource is constructed in association with the management board of the three universities supervised by MOIT; cited sources from MOET and goverment reports in duration 2004- 2014 are used to analyze the impact of school resources on training outcome. The quantitative results of Bootstrap replications method (1000 times) with random effect model indicated the importance of qualified teachers and the financial investment on infrastructure - upgrading the learning environment to the quality of training outcome. Key Words: training outcome, school resources, higher education, graduates, accreditation, education production function.
5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1.2 Scope of the study.3 Organization of the thesis. 5 CHAPTER 2: LITERATURE REVIEW 2.2 The education production function .4 Number of graduates .1 Fixed effects model (FEM) .2 Random effects model (REM) .4 Hausman test for choosing FEM or REM. 35 CHAPTER 4: SCHOOL RESOURCES ON TRAINING OUTCOME 4.1 Overview about the higher education in Vietnam. 39 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
45 CHAPTER 5: CONCLUSION AND IMPLICATIONS 5.2 Limitations of the study.4 Suggestions for further studies. 57 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1 INTRODUCTION 1.1 Introduction "Education and training have the mission to improve knowledge, develop human resources, cultivate country talent, contribute to national development, culture construction and the people of Vietnam" – Documents of the 11th Congress (The Communist Party of Vietnam, 2011). Along with the responsibility and task that the Party and the people entrusted, the education system Vietnam has gained remarkable achievements in the renewal and development of education in the country. The number of educational institutions, as well as highly qualified human resources increased rapidly over the years.
Together with the increase in the number of eligible colleges upgraded to a university. The diversity and competition in education has received much attention, such as the development of the international standard systems, international universities or international cooperation are constantly contributing to improve the educational background of the country, especially in the higher education. “Higher Education is a prerequisite for the production of highly competent experts, which in turn, contributes to the development of organizations and the economy at large. Higher Education therefore is expected to play an important and increasing role in the development of Human Capital of a nation” (Adedeji, 2013).
In Vietnam, one of the most concerned subjects for years recently is the development of higher education. A series of programs, schemes and development innovation education was implemented, but the quality of education is still a large question mark. Following to the Proposal of Higher Education Reforming by the Ministry of Education and Training (MOET), up to 2020, Vietnam will build 900 universities and colleges with a total investment cost of 20 billion dollars and serve the total need of 4. And, according to The Education 8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Development Strategy 2011-2020 (Prime Minister Nguyen Tan Dung, 2012), part 1 section 4 – Target of Development: “By 2020, the percentage of workers through job training and college at about 70%; the percentage of students in a thousand people around 350-400”.
These seemed that the target of higher education development in Vietnam directed towards the education universalization. When the International Network for Quality Assurance Agencies in Higher Education (INQAAHE) was established in 1991; currently has more than 160 members (including specialized program inspectors). Vietnam is now also a member of this association. And maybe, the problem of training quality could be solved or guaranteed through national systems of quality assessment, such as Centers of Education Accreditation of Vietnam National University HCMC (VNU- HN), Da Nang University, Association of Universities and Colleges Vietnam… In which a university will be conducted to an accreditation process – the result is a dual decision (pass or fail).
This is a comprehensive evaluation process, via the ten criteria stipulated by the MOET. However, to be qualified as well as to have an adequate preparation, universities need to go through the process at least a few years and along with other financial issues. In Vietnam, it seemed to be difficult to make sure that qualified universities have guarantee in training quality – perhaps it could be brought out the efficiency in the enrollment or the raising in the university reputation… According to the Decree 25/2006/QD-BGD&DT and 43/2007/QD- BGD&DT - prescribed the Regulation of university and college training, student meets all the graduation standards will be conducted to be graduate (usually, it must go through the council of graduation – by the principal as chairman or vice-principal authorized by the rector). Graduate student will be awarded the diploma; this is certified for the process of learning, acquiring and accumulating knowledge.
Diploma, therefore, also shows the capacity of the grantees. There are three common levels of grading: Excellence, Good and Average. Graduate students with good final 9 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com grade generally have better advantages in the recruitment. Actually, there is almost unprecedented in the annual report on the output quality of each university - the number of graduate students ranked well.
To improve the quality of higher education, namely the quality of training is always a major matter in recent years. Many researches on the higher-education development in the field of Master in Business Administration primarily concentrated in investigating student contentment with school services and training programs. However, they based on survey data, which is apparently difficult to rely on, to access student’s satisfaction toward available resources; and one more important thing that their outcomes stem from the perspective of practitioners – “service beneficiaries”. Challenges maybe come from inadequacies in education laws and policies, furthermore, universities themselves are now facing many difficulties once they still rely heavily on the state budget.
In other words, difficulty in developing and improving the training quality largely may come from the intrinsic capacity – school resources. Consequently, how about the point of inner view – “service providers”? Why universities not to justify the effectiveness of training themselves with their own resources – constitutive factors and development activities. Thus, we assumed the number of quality graduates as productive goods that university (as a firm) can train (or produce) over years. Furthermore, the impacts of school resources on training quality may not be an array of new research.
From the 60s of the last century, there have been many studies such as Hanushek (1986, 1997, 2006), Woessmann (2003; 2005a; 2005b), Heyneman and Loxley (1982, 1983), Nascimento (2008); Harris and Goldrick-Rab (2011); Sullivan (2013)… discussed about this issue and it’s thematic. The researchers from multiple aspects and different methods have brought many approaches and controversial results. A fact that, the role of school resources allocation as well as the impact of these factors on student achievement differ for each of the range of research, countries or region, even each level of educational 10 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. In Vietnam, it seemed to be hard to find any possible research can meet the above mentioned dynamics, almost searchable key words led to studies from the perspective of the beneficiaries and encapsulated in small scopes.
Via consulting development strategy plans or synthesis financial plans at some universities, they are almost identical in each period and even over the years. We could figure out how they documented or what specific scientific subjects were their basements - those make us wonder, as well as motivate for this research. Stemming from the above practical requirements, I proceed the study: “Impacts of school resources on training outcome: a case study on three southern universities supervised by MOIT” This study aims to examine the influence of inner elements such as the number of highly qualified teachers, investments on learning facilities, researches or funds for extracurricular activities… of a university on the quality of training. Particularly, to understand and find the answers for following question: - How does each of resources affect the annual number of qualified graduates? From there, development policies could be set in the line with the current capacity of the university, as well as the order of priority for each resource.2 Scope of the study The study attempts to examine the inner factors that universities can easily directly allocate and adjust, mainly related to financial affections.
The database collected from three universities supervised by the MOIT (industrial university of HCMC, HCMC University of food industry and Nguyen Tat Thanh University) within the 2004-2014 periods. The three universities have operated in different financial-autonomy conditions. Especially, we chose technical students with assumption that these students need training resources to cooperate with learning motivations more than those of economics students. Thus, the panel-database will 11 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com include the number of technical graduates achieving good grade or higher (formal training of college and university), the financial data for resource variables ranging from 2004 to 2014.