The Socio-Economic Impact of University in Thailand: Evidence from Chiang Mai University

For the success of efficient socioeconomic development, it is crucial that budget allocation in higher education is effectively managed, with a clear focus on targeting SDG 4 (Quality Education), which is vital for every country and should be prioritized globally. This research article attempts to assess the socio-economic impact of Chiang Mai University based on the impact of both its expenditure and teaching and training programs on the Northern Thailand economy. Moreover, it also aims to develop the best model to predict the SROI for academic projects before investing the budget for efficient financial management. All the data utilized in this research article come from official organizations such as Chiang Mai University, the Office of the National Economic and Social Development Council (NESDC), and the Provincial Comptroller’s Office of each province in Northern Thailand, with the data collection covering the study period from 2023 to 2025. The key finding is that Chiang Mai University played a significant role in creating a socioeconomic impact on Northern Thailand’s economy, both in the industry sector and the service sector, totaling more than an average of THB 3 billion per year for direct and indirect effects. In addition, every THB 1 million that this university spends can create more than 703 jobs in the agribusiness sector, and, for the same budget spending, it can create 241 jobs in the service sector and 113 jobs in the industry sector, respectively. Technically, for the prediction model to predict the SROI value, it was found that the best model is the Decision Tree model. If the findings of this research can be applied to other universities in Thailand or globally, it would represent a significant initiative in optimizing budget allocation, with a particular emphasis on supporting SDG 4 (Quality Education) as a priority.