Human capital and economic growth: empirical evidence from Malaysia
The objective of this paper is to estimate the long and short run relationship between human capital and economic growth in Malaysia. The study applies rigorous empirical testing to test the validity of the model. Data derived from different sources undergo unit root tests to ensure stationarity at...
| Main Authors: | , |
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| Format: | Proceeding Paper |
| Language: | English English |
| Published: |
2014
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| Online Access: | http://irep.iium.edu.my/38588/ http://irep.iium.edu.my/38588/1/CH023.pdf http://irep.iium.edu.my/38588/4/38588_Human%20capital%20and%20economic%20growth.SCOPUSpdf.pdf |
| _version_ | 1848781632377454592 |
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| author | Mohammad Rusli, Norhanani Aflizan Hamid, Zarinah |
| author_facet | Mohammad Rusli, Norhanani Aflizan Hamid, Zarinah |
| author_sort | Mohammad Rusli, Norhanani Aflizan |
| building | IIUM Repository |
| collection | Online Access |
| description | The objective of this paper is to estimate the long and short run relationship between human capital and economic growth in Malaysia. The study applies rigorous empirical testing to test the validity of the model. Data derived from different sources undergo unit root tests to ensure stationarity at level or first difference. It also utilizes cointegration test, error correction model (ECM), short-run Granger causality, variance decomposition and impulse response function to analyze the impact of human capital on economic growth in the long and short run. The results confirmed that education, government expenditure and economic growth have long run relationships. The results of successful human capital development will not be seen in an instant, but rather over a period of time. In line with Malaysia’s aspiration to become a high income nation in 2020, efforts must be intensified in developing its human capital. |
| first_indexed | 2025-11-14T15:52:39Z |
| format | Proceeding Paper |
| id | iium-38588 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T15:52:39Z |
| publishDate | 2014 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-385882017-09-18T02:54:18Z http://irep.iium.edu.my/38588/ Human capital and economic growth: empirical evidence from Malaysia Mohammad Rusli, Norhanani Aflizan Hamid, Zarinah HB131 Methodology.Mathematical economics. Quantitative methods HD72 Economic growth, development, planning The objective of this paper is to estimate the long and short run relationship between human capital and economic growth in Malaysia. The study applies rigorous empirical testing to test the validity of the model. Data derived from different sources undergo unit root tests to ensure stationarity at level or first difference. It also utilizes cointegration test, error correction model (ECM), short-run Granger causality, variance decomposition and impulse response function to analyze the impact of human capital on economic growth in the long and short run. The results confirmed that education, government expenditure and economic growth have long run relationships. The results of successful human capital development will not be seen in an instant, but rather over a period of time. In line with Malaysia’s aspiration to become a high income nation in 2020, efforts must be intensified in developing its human capital. 2014 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/38588/1/CH023.pdf application/pdf en http://irep.iium.edu.my/38588/4/38588_Human%20capital%20and%20economic%20growth.SCOPUSpdf.pdf Mohammad Rusli, Norhanani Aflizan and Hamid, Zarinah (2014) Human capital and economic growth: empirical evidence from Malaysia. In: 2nd International Congress on Interdisciplinary Behaviour and Social Sciences, ICIBSoS, 4th - 5th November 2013, Jakarta, Indonesia. http://www.scopus.com/record/display.url?eid=2-s2.0-84894740228&origin=resultslist&sort=plf-f&src |
| spellingShingle | HB131 Methodology.Mathematical economics. Quantitative methods HD72 Economic growth, development, planning Mohammad Rusli, Norhanani Aflizan Hamid, Zarinah Human capital and economic growth: empirical evidence from Malaysia |
| title | Human capital and economic growth: empirical evidence from Malaysia |
| title_full | Human capital and economic growth: empirical evidence from Malaysia |
| title_fullStr | Human capital and economic growth: empirical evidence from Malaysia |
| title_full_unstemmed | Human capital and economic growth: empirical evidence from Malaysia |
| title_short | Human capital and economic growth: empirical evidence from Malaysia |
| title_sort | human capital and economic growth: empirical evidence from malaysia |
| topic | HB131 Methodology.Mathematical economics. Quantitative methods HD72 Economic growth, development, planning |
| url | http://irep.iium.edu.my/38588/ http://irep.iium.edu.my/38588/ http://irep.iium.edu.my/38588/1/CH023.pdf http://irep.iium.edu.my/38588/4/38588_Human%20capital%20and%20economic%20growth.SCOPUSpdf.pdf |