EDUCATION ECONOMICS

Oleksandr Yastremskii

ORCID ID: https://orcid.org/0000-0001-9900-3612

ECONOMIC ACTIVITIES «EDUCATION» AND «RESEARCH & DEVELOPMENT» IN THE STRUCTURE OF NATIONAL ECONOMY OF UKRAINE

Abstract. The paper studies the economic activities (EA-s) «Education» and «Research and Development» (R&D) in the system of all EA-s of the national economy of Ukraine. The main tool of the research is an input-output scheme and model. There were used the data on input-output tables of Ukraine (2016). The level of aggregation is 42 EA-s. The main schemes of the study are the flows «Education to other national economy (Education to 41 EA-s)», «R&D to 41 EA-s»; direct flows and feedback «R&D to Education», «Education to R&D». The author simulated the impacts of the «Education» and «R&D» final demands on total and 41 EA-s outputs. The direct influence and feedback between the pair of EA-s «Education – R&D» are highlighted. These computations were made, using Total Requirement Matrix or Leontief inverse. The main conclusions drawn by the author: low intermediate consumption of «R&D» by «Education»; week impact of «Education» final demand on EA-s «R&D», «Computer programming, consulting and information services», «Publishing activities…», «Advertising activity and market research; scientific and technical activities…», «Health care»; strong impact of «Education» final demand on «Energy» output; EA «Pharmaceutics» is the second strongest consumer of «R&D»; Net Exports of «Education» and «R&D» are consequently negative and positive; perspective of this issue studying may be the construction of General Equilibrium model focusing on economic activities «Education» and «R&D». Among other problems the article highlights the following general problems of the economy of Ukraine: the main obstacle of innovation in Ukraine is week institutions; low productivity of the national economy, the strong share of intermediates. Also, the author points out some complications concerning the obtained results.

Keywords: education, research and development, input-output scheme, direct and total requirements, scenario analysis, intermediate consumption, final demand, outputs..

DOI: https://doi.org/10.32987/2617-8532-2019-1-20-30.

JEL classification: I20, I22.

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