Cost and return of an international study program in a developing country: A context of strategy

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Abstract

Higher education has long been viewed as a catalyst for personal advancement and national economic growth, particularly in developing regions (Pal, 2023). This study examined the financial viability and return on investment (ROI) of higher education in developing countries, with a focus on assessing whether the costs are justified by the expected economic benefits. The research analyzed data collected from multiple sources, including government reports, educational institutions, and international databases covering several countries in Southeast Asia and Sub-Saharan Africa. The methodology applied cost-benefit analysis (CBA) principles, utilizing financial metrics such as net present value (NPV) and internal rate of return (IRR) to evaluate the economic returns of higher education investments. The study finds that although initial education costs impose a substantial burden on students and governments, the long-term earnings potential for graduates generally offsets these expenditures. Specifically, postgraduate degrees tend to yield a higher ROI than bachelor’s degrees, with master’s graduates typically recovering their investments within approximately seven years, compared to nine years for bachelor’s graduates. These findings underscore the importance of investing in advanced degrees to promote economic development and suggest that policies enhancing access to higher education can significantly improve national economic outcomes in these regions.

Keywords: Economic Returns, Higher Education Investment, Cost Benefit Analysis

Authors’ individual contribution: Conceptualization — S.N. and T.Kra.; Methodology — S.N. and T.Kra.; Software — S.N., T.Kra., T.Kea., R.P., N.C., and Q.L.; Investigation — S.N. and T.Kra.; Resources — S.N., T.Kra., T.Kea., R.P., N.C., and Q.L.; Writing — Original Draft — S.N. and T.Kra.; Writing — Review & Editing — S.N. and T.Kra.; Visualization — S.N., T.Kra., T.Kea., R.P., N.C., and Q.L.; Supervision — T.Kra.; Project Administration — S.N. and T.Kra.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D61, J24, I22, I25

Received: 02.12.2024
Revised: 12.03.2025; 20.05.2025; 20.10.2025
Accepted: 10.11.2025
Published online: 13.11.2025

How to cite this paper: Namraksa, S., Kraiwanit, T., Keawngam, T., Ponsri, R., Chaowanachaemchun, N., & Luo, Q. (2025). Cost and return of an international study program in a developing country: A context of strategy. Corporate and Business Strategy Review, 6(4), 153–162. https://doi.org/10.22495/cbsrv6i4art14