Human Capital Accumulation and Economic Growth in Malaysia – Investigating the Long Run Nexus

Sieng, Lai Wei; Yussof, Ishak

doi:10.17576/jem-2014-4801-13

Cited by 9 publications

(2 citation statements)

References 38 publications

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“…Thus, confirming the existence of a long-run relationship between education expenditure and economic growth. Lai and Yussof (2014) examined the long-run relationship between human capital accumulation and economic growth in Malaysia from 1981 to 2010. The findings of their autoregressive distributed lag (ARDL) model revealed that there is significant long-run relationship between education level and economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Revisiting Long-Run Dynamics of the Determinants of Public Education Expenditure in Malaysia

SING YUN,

YUSOFF

2019

JAAAB

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ABSTRACT This main purpose of this paper is to revisit the long run dynamics on Malaysiaâ€™s public education expenditure determinants during the period of 1982 to 2016. This study will also attempt to discuss some of the relevant theories that are able to explain and characterized the pattern of Malaysiaâ€™s public education expenditure. A relatively recent developed estimation technique, ARDL bound testing was employed to estimate the long run relationship between public education expenditure and its determinants. The results based on the ARDL bound testing approach concluded that a stable, long-run co-integrated relationship exists between public education expenditure and its determinants: real gross domestic product (GDP), unemployment rate (UNEM), inflation rate (INF) and working age population (POP2). Furthermore, the result highlighted the relevance and suitability of Keynesian Counter Cyclical theory, Economic-Demography theory and Peacock-Wiseman in explaining the pattern of Malaysiaâ€™s public education expenditure. In addition, bilateral causality was found between public education expenditure and real GDP. Similarly, a two-way causal relationship was also found between tax revenue and public education spending. Finally, this study suggests that policymakers should pay more attention to the economic situations and the demands from society when formulating future policies or allocations.

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Section: Literature Reviewmentioning

confidence: 99%

Revisiting Long-Run Dynamics of the Determinants of Public Education Expenditure in Malaysia

SING YUN,

YUSOFF

2019

JAAAB

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“…Thus, confirming the existence of a longrun relationship between education expenditure and economic growth. Lai and Yussof (2014) examined the long run relationship between human capital accumulation and economic growth in Malaysia from 1981 to 2010. Empirical evidence from the autoregressive distributed lag (ARDL) model revealed that there is significant long run relationship between education level and economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

The Determinants of Public Education Expenditure in Malaysia

Yun¹,

Yusoff²

2018

JEM

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The aim of this paper is to investigate the determinants of the public education expenditure in Malaysia during the period of 35 years from 1982 to 2016. This study intends to address the existing research gaps within Malaysia context that failed to receive much attention in the past. The determinants of education expenditure will be modeled using time series data within the autoregressive distributed lag (ARDL) Bound Testing approach and Error Correction Model (ECM) method. The empirical findings from this study identified the real gross domestic product growth rate (GDP), unemployment rate (UNEM), inflation rate (INF) and working age population (POP2) as the long run determinants of public education expenditure. Findings from the ARDL Bound Testing result further supported the Keynesian Counter-Cyclical theory as implied by the negative relationship between economic growth and public education expenditure in the long run. The short run analysis through ECM demonstrated that fluctuations in education expenditure was sensitive to the real gross domestic product growth rate (D(GDP)), unemployment rate (D(UNEM)), population of age less than 15 (D(LNPOP1)), and population of age greater than 64 (D(LNPOP3)). This study further recommends that the policy makers to play the role in responding to the economic conditions and demands of the society in their decision-making of the future allocation.

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The role of education and skills on economic growth in Malaysia

Abidin¹,

Saraih²,

Rashid³

et al. 2023

Advances in Material Science and Manufacturing Engineering

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Human Capital Accumulation and Economic Growth in Malaysia – Investigating the Long Run Nexus

Abstract: The endogenous growth theory emphasises that human capital is crucial to a country's economic growth.

Cited by 9 publications

References 38 publications

Revisiting Long-Run Dynamics of the Determinants of Public Education Expenditure in Malaysia

Revisiting Long-Run Dynamics of the Determinants of Public Education Expenditure in Malaysia

The Determinants of Public Education Expenditure in Malaysia

The role of education and skills on economic growth in Malaysia

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