Human capital and sources of financing

Economic Annals-ХХI: Volume 142, Issue 7-8(1), Pages: 69-72

Citation information:
Olievska, M. (2014). Human capital and sources of financing. Economic Annals-XXI, 7-8(1), 69-72. https://ea21journal.world/index.php/ea-v142-17/

Myroslava Olievska
PhD (Economics),
Associate Professor,
D. Sc. (Economics) Degree Seeker,
Research Financial Institute of
the Academy of Financial Management of the Ministry of Finance of Ukraine
38-44 Dehtiarivska Str., Kyiv, 04119, Ukraine
olievskamg@ukr.net

Human capital and sources of financing

Abstract. Introduction. Economic conditions improving in the national economy is impossible without effective and efficient development using human capital. That is why investment in human capital has long-term orientation and particular socio-economic significance. However, there are many problems of human capital formation in modern Ukrainian conditions.

Purpose. To ground the theoretical principles of human capital financing; to substantiate the necessity financial resources optimization, directed on development of human capital in Ukraine.

Results. The actual issues of human capital financing are analyzed. The author’s definition of human capital of households, corporate sector, region and state are formulated. In author’s opinion, human capital is formed on the basis of natural and intellectual human capital and develops due to investments. It is well-proven that financing of education and medicine from traditional sources is insufficient and ineffective. Optimization of financing for human capital development is grounded; in particular, activate financing of human capital from the resources of enterprises and people.

Conclusion. Sources of human capital financial provision have been grounded in order to support effective usage of the state budget resources and extend the volumes of its financing from corporate sector and households.

Keywords: Human Capital; Budget Financing; Corporate Sector Finances; Households’ Finances

JEL Classіfіcatіon: Е62; G30; I20; J24

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Received 18.05.2014