Multilevel Model of Transformation of Higher Education Funding Into Human Capital: A Systemic-Dynamic Approach

The relevance of the research topic is determined by the strategic role of higher education funding in the formation of human capital, which is a key factor in socio-economic progress in the context of global transformations. In today's world, where the competitiveness of economies depends on the quality of knowledge, skills, and innovative potential, higher education serves not only as a platform for professional training but also as a catalyst for social mobility, technological development, and regional balance. However, the complexity of assessing the effectiveness of financial investments in this area lies in their prolonged effect, nonlinear interrelationships, and indirect influence through institutional, economic, and sociocultural factors. This problem is particularly acute in countries with transitional economies, where systemic constraints such as insufficient funding, emigration of specialists, and uneven regional development complicate the transformation of resources into socially significant results. The article proposes a conceptual and methodological approach to modeling the processes of converting financial flows in higher education into human capital, with an emphasis on systemic-dynamic analysis. It discusses the structuring of multilevel transformation chains that encompass the economic, innovative, social, and global dimensions of education's impact. The paper analyzes the role of time lags, feedback loops, and contextual factors, such as institutional weakness or demographic changes, on the effectiveness of financial flows and the effects of higher education funding. It examines the methodological foundations for evaluating investment effectiveness, in particular the prospects for developing a composite index that integrates indicators from different stages of transformation, as well as adapting the model to the current challenges of the educational environment in conditions of resource constraints and dynamic external influences. The article aims to deepen the understanding of the mechanisms of transforming financial resources into human capital and to create tools for improving educational policy in order to ensure the sustainable development of society