Research of higher education input-output efficiency based on principal component analysis

A mathematical model was built to make analysis on higher education input-output efficiency. The model included eight input indicators and six output indicators of 31 areas in China. The principal component analysis method was used to reduce dimension of input indicators and output indicators. The multidimensional variables were simplified to one input principal component and one output principal component, which then were used to compare and analyze input-output efficiency of 31 areas. As a result, higher input usually leads to higher output but doesn´t lead to higher input-output efficiency. Effective operational mechanisms should be set up to ensure the close connection between input and output, and to improve input-output efficiency.