Impact of Education as Human Capital Investment on Economic Growth in Malaysia

English

Abstract

This study examines how technology, human resources, and education affect economic growth in Malaysia using annual time series data from 1984 to 2019. This research investigates the relationship between technology, human capital investment (education as a proxy for human capital), and economic growth using an autoregressive distribution gap to cointegration technique. The estimation findings demonstrate that human capital investment in education, as a proxy for good human capital, has a considerable influence on long-term economic growth. However, it is not significant for the short term. However, human capital boosts economic productivity when the human capital formation process is complete. Technology is very supportive in accelerating the formation of human capital and is very good at boosting an economy supported by labor and financial capital.