Financial and economic aspects of education

Liudmyla Yurchyshena


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Language: Ukrainian
Abstract. The problem of financing higher education is becoming increasingly important in both domestic and international practice. Changing approaches to financing models and simultaneous reduction of public funding depends on several factors, mainly due to the transformation process related to the changes in technology, the wave of innovations, the effects of the Covid-19 pandemic, financial and economic crises causing the review of the role and priorities of the institution of the state, public finance potential on the financing of higher education. The aim of the article is to study theoretical approaches to understanding the concept of the «financing model», assess the results of the introduction of the formula for the allocation of the state budget expenditures between higher education institutions of Ukraine to identify the most impactful components of the model and trends. In the process of our research, we used such methods as: analysis, synthesis, comparison, system analysis, statistical methods (regressions, means, grouping, data distribution), data visualization method and others. Based on a synthesis of approaches of foreign and domestic scholars to the concept of «the funding model», the author proposes to consider it at two levels: macro (public funding, which is a tool for allocating budget funds between the state and higher education institutions under pre-defined conditions, agreements, parameters, indicators) and micro (formed at the level of a separate university, and includes budget and additional funding in certain proportions). The article examines the macro approach to the results of the introduction of the funding formula in 2020–2021, assesses the level of funding for the HEIs, determines the interdependence of the integrated performance indicator and the estimated student body of the HEIs, assesses the strength of relationship, distribution criteria and obtained values (estimated body, scale of activity, regional support, scientific activity, international recognition, employment of graduates). The positive effects of the introduction of the formula model of financing are the implementation of the state educational policy, strategic positioning of universities, the introduction of innovative approaches to management, conducting educational and scientific activities, improving quality indicators. The disadvantage is the dependence on student body studying at the request of the state, limited resources (material, human, financial, etc.) to achieve efficiency (as a result – underfunding), so powerful, innovative universities able to respond to stakeholder requests, produce quality services and effectively promote them in the market of educational services have advantages.
Keywords: financing model, formula financing, financing of higher education, financing of universities, complex activity indicator.

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