The Economic Nature of Education Production

By Gryshchenko, Ivan | Economics & Sociology, July 1, 2012 | Go to article overview

The Economic Nature of Education Production


Gryshchenko, Ivan, Economics & Sociology


ABSTRACT. This article is dedicated to elaborating the scientific research of the economic nature of modern education production. There has been featured the theoretical approaches to investigating the education production and education product as the most important constituents of the objectives of modernising the Ukrainian education. There has been analysed the economic resources and the product of education activity.

JEL Classification : I 23, P2

Keywords: economic service, education product, education production, the economic resources of education production, investments in education.

(ProQuest: ... denotes non-US-ASCII text omitted.)

Introduction

Market relationships became to prevail today almost in all spheres of human activity. Practically everything is considered today as an article of trade or a service and every person - as their producer or consumer. That concerns the area of education as a package of paid educational services in full measure. Education is considered a practical real business aimed at meeting the needs of a customer - a student, his/her employer. The objective of higher educational establishments is to produce the education products, to sell them for a mass consumer. That is a necessary condition for economic growth of the state economy. Thus up to this time many issues of economic nature remain to be unsolved and they are actively being discussed in domestic and foreign literature.

The definition of the main directions, priorities, tasks and mechanisms of implementing the state policy as the condition of developing the innovative economics is the object of burning scientific discussions.

The objective of the research is to study the theoretical approaches to investigating education production and education products as the most significant constituents of the aims and contents of modernizing the Ukrainian education.

The main body. Since 2001 Ukraine started reporting the statistical indicators of the social and economic condition of the state according to the generally accepted in the international statistics system of national accounts. Since that time the basic indicators - gross domestic product and gross added value are estimated according to the types of economic activity. And there is a separate type among them - "education" that is worth the scientists' and specialists' attention. "Economic activity is the most important form of the conscious and purposeful labour activity of people in the process of which they mostly enter into active relations with nature and economic relations and relationships among themselves in order to produce the economic goods in different spheres of social reproduction (direct manufacture, exchange, division, consumption etc.) as well as to form their personalities. Economic activity is the process, for this reason it has the aim (producing goods and personality), means (means of production) and the result (economic welfare in the form of useful for the society goods and services)" (Mochernyi, 2010). The representation of such a kind of activity as "education activity" makes possible to investigate the most important processes and phenomena of the educational activity of Ukraine and their economic analysis as well as to develop measures of modernizing the educational activity under modern conditions.

In our opinion, such an approach does not promote the recognition of economic potential of education and its significance as one of the main subsystems of economic system of society, as well as it does not permit to comprehend changes in educational activity under market conditions and its role in the world.

The result of people's labour is a product. It can be in a material or non-material form. As it is mentioned in the economic encyclopaedia dictionary (Mochernyi, Larina, 2006), the products of labour are divided into material and non-material (services). And then, "a service is the special consumer value of the process of labour which is expressed in a useful effect that meets the needs of a person, of a staffand society" (Mochernyi, Larina, 2006). …

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