The influence of educational attainment among labor force in Malaysia towards economic growth

Education brings a wide range of benefits for both individuals and societies. Therefore, education has always been recognized as an instrument to economic growth. Indeed, measures of educational attainment reflect the knowledge and skills of the labor force and human capital of...

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Bibliographic Details
Main Author: Nundakrisping, Meges.
Format: Final Year Project Report / IMRAD
Language:English
Published: Universiti Malaysia Sarawak, UNIMAS 2009
Subjects:
Online Access:http://ir.unimas.my/id/eprint/6483/
http://ir.unimas.my/id/eprint/6483/8/Nundakrisping%20Meges.pdf
Description
Summary:Education brings a wide range of benefits for both individuals and societies. Therefore, education has always been recognized as an instrument to economic growth. Indeed, measures of educational attainment reflect the knowledge and skills of the labor force and human capital of the nation. This study focuses on educational attainment among labor force as a determinant of Ma laysia’s economic growth. This research is carried out for the purpose of examinin g the causality pattern between labor force with primary education (LF PE ), labor force with secondary education (LF SE ), labor force with tertiary education (LF TE ) and Malaysia’s economic growth particularly in terms of Gross Domestic Product (GD P) by using 30 years time series data. The empirical result suggests that all the da ta applied in this study are stationary at their first difference and are integr ated of the same order. The Johansen Cointegration test has detected a single cointegrat ion vector among the variables which indicates a long-run relationship between the m. The Granger’s test result denotes the existence of a short-run causal relatio nship between GDP and LF PE , LF SE and LF TE. It also entails that Malaysia’s GDP influence the e ducational attainment among labor force in the short-run.