Financial Sustainability, Cost-Saving Strategies and Contingency Plans in Higher Educational Institutions During the COVID-19 Pandemic

Ikm Mokhtarul Wadud

Chapter Chapter 17 in Innovation, Leadership and Governance in Higher Education, 2023, pp 317-334 from Springer

Abstract: Abstract This study explores how the higher educational institutions have managed their financial distress as their revenue declined with the rise of the COVID-19 pandemic. In particular, the study examines the mitigation strategies for the adverse impact of the pandemic through cost cuts and changes in budget allocations in Australian universities. Mainstream study analysis examines the long-term equilibrium growth pattern of overseas students’ enrolment along with macroeconomic variables such as Australia’s GDP and real exchange rates. The study finds a 5.7% trend growth of overseas student enrolment, with a trivial dampening impact of the COVID-19 pandemic on this growth rate. Also, GDP and exchange rates are cointegrated with overseas student enrolment, with a significant short- and long-run impact on GDP on student enrolment. The study also identifies that following any departure from equilibria, such as during the pandemic, the equilibrium long-run trend growth of student number and the macroeconomic variables adjust at 23% per annum. The chapter also provides a critical perspective of the employment redundancies and the contingency plans adopted by the Australian universities during the pandemic in the context of economic theory and empirics.

Keywords: Financial sustainability; Overseas student enrolment; Gross domestic product; Cointegration; ARDL model; Australian universities (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-19-7299-7_17

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DOI: 10.1007/978-981-19-7299-7_17

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