Peculiarities of the formation of human capital in rural areas in the pre-war period

Abstract

In Ukraine, there is a systemic crisis related to the reduction of the population in rural areas. As a result, settlements disappear, the industrial and social sphere declines. Revival of rural areas is becoming a problematic process, and one of the main reasons for this is the lower quality of life of rural residents compared to residents of large cities. The purpose of the study was to assess individual components of human capital formation in rural areas in the pre-war period. In the research process, a dialectical method of cognition, a systematic approach to the study of economic phenomena and processes, an abstract-logical, statistical grouping and a method of comparing averages using the Student’s t-Test were used. It was established that in 2019-2021, the incomes of rural households increased from UAH 96,692 to UAH 118,890. Households in rural areas and in large cities were also grouped according to the level of self-assessment of their income level. It was established that in households with an income of up to UAH 40,000 the share of those who assessed the level of their income as “It was enough and savings were made” in rural areas and in large cities was equal to 0.8%. The specific weight of those who assessed their income level as “It was not possible to provide even enough food” was equal to 14.2% and 11.4%, respectively. A study of the impact of the level of income on the amount of expenses for such items as food, education and health care was conducted. The specific weight of expenditure on food products in their total value was determined. It has been established that the amount of expenditure on food products is clearly dependent on the level of household income both in rural areas and in large cities. In rural areas, healthcare costs were 22% lower than in large cities. The results of this study can be used during the development of the state strategy for the post-war reconstruction of rural areas

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“…Bhagavan & I. Virgin (2004) note, although the institutional potential is often mentioned in the context of development and is well understood in general terms, it can be challenging to define precisely and measure with specific terms and methods. In addition, institutional capacity has two dimensions: internal organisational features and external institutional context (Shyian et al, 2023).…”