Mordan Yevheniya, PhD in Economics, senior lecturer at the Department of Finance, Banking and Insurance, Sumy State University, Sumy, Ukraine

ORCID ID: 0000-0002-3942-1262
e-mail: y.mordan@uabs.sumdu.edu.ua

Sayko Anastasia, student, Sumy State University, Sumy, Ukraine

ORCID ID: 0000-0003-4964-4184
e-mail: nastasiasay@gmail.com

Temchenko Alexander, student, Sumy State University, Sumy, Ukraine

ORCID ID: 0000-0002-9539-6751
e-mail: sashatemchenko13@gmail.com

Investment in Education: Features, Trends and Problems

Abstract. Introduction. Investment in the education system is an important factor in improving the social and cultural standard of living of the population. The article is devoted to the actual problem of investing in the education system in Ukraine.

Purpose. The purpose of the article is to analyze current trends, features, problems and determine the role of investing in the education system, as well as the conditions necessary for the implementation of an effective policy of investing in education.

Results. In the course of the study, the main problems, trends and principles of investment in the educational sphere of the state were considered. The main sources of formation of financial resources by educational institutions, components of the mechanism for implementing investment policy in the field of education and the role of the state in investing in the domestic education system are identified. A study of the main sources of funding for education in Ukraine was conducted, as well as the latest alternative ways of financing educational institutions that are not very developed at the moment. The study found that the role of the state in investment processes remains crucial. The current state of investment in the Ukrainian education system during 2014-2018 is analyzed. Ukraine’s place in terms of investment in education in comparison with the developed countries of the world has been determined. To do this, we compared public and private spending on education in Ukraine and in some member countries of the Organization for economic cooperation and development for 2014-2017 and found out the level of education funding in Ukraine as a percentage of GNP among other OECD countries. The dynamics of investment expenditures by sources of funding in the education system and the dynamics of the volume of expenditures on education from the consolidated budget were considered. The specific weight of students by sources of funding and the distribution of expenses between different types of educational institutions is determined. The largest educational grant programs in Ukraine with the participation of foreign investors were considered.

Conclusions. The study identified positive and negative aspects of investing in the education system. Conclusions are made on ways to increase the efficiency of investment in education. It was determined that investing in education is one of the most promising areas of investment. A number of problems of investing in education are highlighted. It is investigated that at the moment the largest share of education funding falls on state and local budgets, while the investment activity of individuals and legal entities in this area is insignificant. It was determined that the level of expenditures on education in Ukraine is among the highest in the world, but this does not lead to increased productivity and employer satisfaction with the quality of the workforce.

Keywords: investment; education system; financing; expenditures; budget.

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