Human resource is a crucial factor for economic growth and country competitiveness in the world market. Higher education increases the quality of human resource. Thus, Thai government has continuously expanded higher education. However, the higher educated labor force is still relatively small. The objectives of this study are to investigate the economic factors affecting demand for higher education in the short run and in the long run, based on the assumption that education is consumption, and also investment good according to human capital theory. The error correction model (ECM) and time-series data during 1977-2007 are used for estimating demand for higher education in public universities, open universities, and private universities. The findings indicate that economic factors affect demand for higher education in both short run and long run. Tuition and fees have a positive effect on demand for higher education in public universities and private universities. This is contradicted to human capital theory because of the multicollinearity problem. Income per capita is positively related to demand for higher education in public universities and private universities. Expected earnings have a positive effect on demand for higher education in public universities. Rate of return on education positively relates to demand for higher education in public universities and private universities. Opportunity cost negatively relates to demand for higher education in public universities and private universities, but positively relates to demand for higher education in open universities. Unemployment rate has a positive effect on demand for higher education in open universities and private universities, but has a negative effect on demand for higher education in public universities. Finally, the availability of student loan increases demand for higher education in public universities, open universities, and private universities.
