The financing methods of higher education system

Abstract

The need to examine the efficiency of state financing of universities is becoming more important for a number of reasons. The growth in the social demand for higher education, the globalization and internationalization of the higher education system, the recognition of the need to improve the quality of studies coincide with the financing aspects of activities of higher education institutions. The object of the research is to analyze the financing models and state funding methods of the higher education system and to disclose the advantages as well as dysfunctions of each conception. This paper examines the mechanisms through which governments allocate resources to higher education in order to establish effective means to transfer these subsidies to institutions.