Urbanization and Human Capital Development in Malaysia

English

Abstract

This paper investigates the impact of urbanization in Malaysia and human capital development in
Malaysia in particular urbanized areas. We argue that the presence of urbanites at the turn of the 20th
century has had a positive impact on human capital in Malaysia today. This is evidenced by empirical
evidence using the Ordinary Least Squares (OLS) method by adopting the Índice Firjan de
Desenvolvimento Municipal (IFDM) method to calculate the human capital development index in
Malaysia. We find that the urbanization program has a positive impact on human capital development
in Malaysia.