Higher Education Financing and Quality of Higher Education in Thailand

The aim of this study is to analyze the relationship between higher education financing and its quality. The study found that there exist no correlation between the internal quality assurance scores and an individual characteristic of higher educational institute. Government budget in all items cannot explain the internal quality assurance scores in total, the internal quality assurance scores on graduates, as well as the internal quality assurance scores on research and development. The study, therefore, suggests that Thailand needs to have the national human resource development plan for the Budget Bureau Office to use as a guideline inallocatinggovernment budget for each university so as to ensure that universities will provide graduates according to the direction of the national development. Furthermore, this study recommends that public budget for higher education should be demand side financing system that will lend the money directly to students. A demand side student loan system will encourage competition among universities in student admission, and improving their curriculum in accordance with the needs of labor market. Keywords: