JEL Classification: J21; J22; J24; J44.
Koval N.,Candidate of Economic Sciences, Associate Professor, Vinnytsia National Technical University, Vinnytsia, Ukraine
e-mail: nokoval@gmail.com
Conceptual approaches to investing in human capital as a factor of the competitiveness growth in the national economy
Abstract. Introduction. The article investigates modern conceptual approaches to investing in human capital in order to increase the competitiveness of the national economy. New scientific approaches to the sources and structure of investments into human capital in Ukraine are considered as well as the assessment of the returns from them. The dynamics of investment into human capital by Ukrainian enterprises are analyzed and the main constraints on investment growth are identified. It is also determined that at domestic enterprises the reduction of the budget expenditures is carried out primarily through the saving of personnel costs. In particular, the low level of investment by domestic enterprises in human capital is due to the following reasons: lack of available funds from enterprises; inefficient government incentive system for enterprises; misunderstanding by the leadership of the need for such measures. Also, the article analyzes the main achievements of developed countries in stimulating the growth of the competitiveness of the national economy. The study of conceptual approaches to investing in human capital provided the basis for the emergence of a new concept for the description of market processes based on an analysis of factors of the competitiveness growth in the national economy.
Purpose. The purpose of this study is to determine the main features of investing in human capital, to identify problems and prospects for the development of Ukraine’s human capital in modern conditions, and to assess the state of investing in its reproduction and development.
Results. Established that human capital is an important factor in ensuring the competitiveness of the national economy, which requires not only significant investment, but also the creation of effective mechanisms for their distribution and control over their use. The positive experience of the developed countries in the field of the state policy of investing in human capital at both macro and micro level is formed, which should serve as a benchmark for the reform of Ukrainian economic policy, which should be aimed at ensuring the growth of a sufficient level of competitiveness of the national economy.
Conclusions. Human capital constitutes a major part of the welfare of society and is the most valuable productive resource, which is constantly updated, improved, evolves, acts as a powerful factor in economic and social progress. The development of conceptual foundations for the formation of a socio-economic mechanism for the preservation of human capital in a crisis, the identification of innovative methods of investment in human capital and new opportunities for its effective use. For developed countries, human capital is an intensive economic resource, the most important factor in the formation of a high-tech, innovative economy. An indispensable condition for the development of human capital and its productive use is the high quality of education and science, innovative development of the economy, high social status of intellectual activity. Therefore, the condition for its effective use in the country is economic freedom, high responsibility, competitive quality of life and well-developed conditions for intellectual work. In a crisis, human capital is the fastest and most severely affected by the simultaneous deterioration of the conditions and its formation and implementation. Therefore, investing in human capital is absolutely necessary for the competitiveness growth of any national economy.
Keywords: human capital; investment; human capital conservation; depreciation; competitiveness; national economy.
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