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Human capital and economic growth: empirical evidence from Malaysia

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.

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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.

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 728/38588 Recent Trends in Social and Behaviour Sciences. ISBN: 978-113800121-3
Uncontrolled Keywords: Human capital, economic growth, Malaysia
Subjects: H Social Sciences > HB Economic Theory > HB131 Methodology.Mathematical economics. Quantitative methods
H Social Sciences > HD Industries. Land use. Labor > HD72 Economic growth, development, planning
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Dr. Zarinah Hamid
Date Deposited: 26 Nov 2014 15:31
Last Modified: 18 Sep 2017 10:54
URI: http://irep.iium.edu.my/id/eprint/38588

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