Why is Human Capital Investment Not Immediate Impact? Investigating the Impact of Human Capital, Financial Capital, and Technological Capital on Economic Growth in Malaysia

Abstract

This study's objective for look at short-term and long-term effects of production parameters (money, people, technology) on national production (GDP). In this study, the money factor is indicated by total investment nationally, the human factor is indicated by work participation (workers), and human capital (total investment in education and health nationally). Our technology factor uses the indicator of total technology investment nationally (Total investment in science and technology research and development plus technology imports). This study uses secondary data obtained from the World Bank for the period 1985 to 2020. The Distributed’s Autoregressive Lag Method was used in this research. Some investigation found something about investment to the human resources cannot be directly felt in the short term because the impact given in investment in human resources requires a process before it has an impact on national production. However, financial capital, work participation, and technology can be felt immediately in the short term. Human Capital are very important. This requires good attention in supporting the improvement of human capital. Human capital investment is beneficial in the long term and having a significant effect to the long term.