SPECIFIC FEATURES OF GOVERNMENT-MARKET REGULATION IN THE AREA OF EDUCATION WITHIN THE NATIONAL ECONOMIC DOMAIN

Abstract

The article emphasizes a commonly recognized fact of exceptional significance of education for national economic and social development, enhancing its competitiveness in the world arena and knowledge-intensity of production. It is argued that education is a vital link that unites all sectors of the economy and social aspects as well as a critical accompanying element in the life of every individual that creates human and social capital. Traditionally, education refers to the area of a government regulation and control that sets its development priorities and vectors. However, to date, reforming the education sector is becoming a global mainstream trend which promotes a shift from government regulation towards a conditional mechanism of self-regulation. Thus, viewing education as an object of market regulation is of particular relevance in modern realia which has underpinned the objectives of this study. From the national economic development perspective, the article provides insights on education industry through the prism of a market mechanism which allows for identifying an educational service category as its major regulation object. Based on the domestic and international research surveys, the key and characteristic features of the education sector have been revealed which determined its specifics as a system of mixed private-public goods. The study also discusses the basic approaches to the interpretation of an education market, its functions and key structural elements which primarily include consumers, suppliers, intermediaries, sources of finance, etc. On the basis of research findings, a conclusion has been made about the critical need to balance government regulation of the educational services sector with the use of market mechanisms and tools.