Economics and management of national economy

Evaluation of higher education services cost

Economic Annals-XXI

Economic Annals-ХХI: Volume 178, Issue 7-8, Pages: 57-69

Citation information:
Kovtunets, V., & Londar, S. (2019). Evaluation of higher education services cost. Economic Annals-XXI, 178(7-8), 57-69. doi: https://doi.org/10.21003/ea.V178-05

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Volodymyr Kovtunets
PhD (Physics and Mathematics),
Associate Professor,
Head of the Department,
Institute of Higher Education of the National Academy of Educational Sciences of Ukraine
9 Bastionna Str., Kyiv, 01014, Ukraine
vkovtunets@ukr.net
ORCID ID: http://orcid.org/0000-0001-9077-4867

Sergiy Londar
D.Sc. (Economics),
Professor, Director,
State Scientific Institution «Institute of Educational Analytics»
5 Volodymyr Vynnychenko Str., Kyiv, 04053, Ukraine
londar@i.ua
ORCID ID: http://orcid.org/0000-0003-1838-288X

Evaluation of higher education services cost

Abstract. At present, the higher education in Ukraine is in conditions of fierce competition from foreign higher educational institutions. Hence, not only the quality of educational services should be significantly improved, but also the ways to increase the efficiency of the use of available resources, including funds provided to Ukrainian universities from the state budget for the training of specialists by state order. To perform the latter task, it is necessary to know the cost of training a specialist in a particular specialty.

The article presents the results of a comparative study of the cost of services in the field of higher education in Ukraine, depending on specialties (educational programs). The evaluations were compared by two methods. One of them is a «bottom-up» approach, in which statistical information was used to verify and analyze the information collected from Ukrainian universities which independently assessed the budgetary expenses for training specialists of various specialties, in particular, as part of their creation of budget requests. In another, the so called «top-down» approach, the regression model developed by the authors was used to determine budget costs for training specialists of various specialties.

The comparison of the results of these two approaches showed that in Ukraine, the state budget expenses for preparing a Bachelor of Socio-Economics degree in full-time education are higher than the corresponding expenses for preparing bachelors of technical specialties, despite the need for more valuable facilities and equipment for training of the latter. The gist of the problems is disclosed as the one caused by the existing system of distribution of state funds.

Keywords: Simulation; Higher Education; Higher Education Funding; Performance-based Funding; Cost of Higher Education Services; Cost of Bachelor Training

JEL Classification: C6; I21; I22; I23

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V178-05

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Received 2.08.2019
Received in revised form 7.08.2019
Accepted 11.08.2019
Available online 30.09.2019

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