ECONOMIC RESULTS OF INVESTING IN THE REPRODUCTION OF HUMAN CAPITAL OF TERRITORIAL COMMUNITIES

Abstract

The article examines the economic results of investing in the reproduction of human capital in territorial communities as a key prerequisite for their sustainable, innovation-oriented, and socially balanced development. It is substantiated that under current wartime challenges, demographic losses, migration shifts, and the needs of Ukraine’s post-war recovery, investment in human capital should be considered not only as a component of social policy, but also as a strategic instrument for strengthening the economic, budgetary, and institutional capacity of a community. The essence of investment in the reproduction of human capital at the local level is clarified as the purposeful allocation of budgetary, private, donor, and partnership resources aimed at preserving, restoring, accumulating, and qualitatively renewing the human potential of the population. The main components of  such investment are identified, namely demographic and health-preserving, educational and cognitive, professional and qualification, digital and innovation, social and inclusive, cultural and value-based, and institutional and environmental. Using the example of the Lviv City Territorial Community, the article analyzes the dynamics of budget financing of the key components of human capital reproduction in 2021-2025 and reveals its growth, accompanied by positive changes in employment, population income, the financial capacity of the community, as well as the development of digital infrastructure and the innovation environment. It is proved that the economic results of such investment are manifested through direct, indirect, and long-term effects, ranging from improved quality of basic services and strengthened functional capacity of the social sphere to the expansion of the tax base, enhanced entrepreneurial activity, and technological modernization of the community. The practical significance of the results obtained lies in the possibility of their use for improving local budget policy, identifying investment priorities, and increasing the effectiveness of strategic management of territorial community development.

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