Cover Image

Education expenditure and economic growth: a causal analysis for Malaysia

This paper focuses on the long-run relationship and causality between government expenditure in education and economic growth in Malaysian economy. Time series data is used for the period 1970 to 2010 obtained from authorized sources. In order to achieve the objective, an estimation of Vector Auto R...

Full description

Saved in:
Bibliographic Details
Main Authors: Mohd. Yahya, Mohd. Hussin, Muhammad, Fidlizan, Abu @ Hussin, Mohd. Fauzi, Abdul Razak, Azila
Format: Article
Published: International Institute for Science, Technology and Education (IISTE) 2012
Subjects:
HB Economic Theory
HC Economic History and Conditions
Online Access:http://eprints.utm.my/id/eprint/31766/
http://www.iiste.org/Journals/index.php/JEDS/article/download/2047/2026
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.utm.31766
record_format eprints
spelling my.utm.317662019-01-28T03:50:02Z http://eprints.utm.my/id/eprint/31766/ Education expenditure and economic growth: a causal analysis for Malaysia Mohd. Yahya, Mohd. Hussin Muhammad, Fidlizan Abu @ Hussin, Mohd. Fauzi Abdul Razak, Azila HB Economic Theory HC Economic History and Conditions This paper focuses on the long-run relationship and causality between government expenditure in education and economic growth in Malaysian economy. Time series data is used for the period 1970 to 2010 obtained from authorized sources. In order to achieve the objective, an estimation of Vector Auto Regression (VAR) method is applied. Findings from the study show that economic growth (GDP) positively cointegrated with selected variables namely fixed capital formation (CAP), labor force participation (LAB) and government expenditure on education (EDU). With regard to the Granger causality relationship, it is found that the economic growth is a short term Granger cause for education variable and vice versa. Furthermore, this study has proves that human capital such as education variable plays an important role in influencing economic growth in Malaysia. International Institute for Science, Technology and Education (IISTE) 2012 Article PeerReviewed Mohd. Yahya, Mohd. Hussin and Muhammad, Fidlizan and Abu @ Hussin, Mohd. Fauzi and Abdul Razak, Azila (2012) Education expenditure and economic growth: a causal analysis for Malaysia. Journal of Economics and Sustainable Development, 3 (7). pp. 71-81. ISSN 2222-2855 (Electronic); 2222-1700 (Print) http://www.iiste.org/Journals/index.php/JEDS/article/download/2047/2026
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
topic HB Economic Theory
HC Economic History and Conditions
spellingShingle HB Economic Theory
HC Economic History and Conditions
Mohd. Yahya, Mohd. Hussin
Muhammad, Fidlizan
Abu @ Hussin, Mohd. Fauzi
Abdul Razak, Azila
Education expenditure and economic growth: a causal analysis for Malaysia
description This paper focuses on the long-run relationship and causality between government expenditure in education and economic growth in Malaysian economy. Time series data is used for the period 1970 to 2010 obtained from authorized sources. In order to achieve the objective, an estimation of Vector Auto Regression (VAR) method is applied. Findings from the study show that economic growth (GDP) positively cointegrated with selected variables namely fixed capital formation (CAP), labor force participation (LAB) and government expenditure on education (EDU). With regard to the Granger causality relationship, it is found that the economic growth is a short term Granger cause for education variable and vice versa. Furthermore, this study has proves that human capital such as education variable plays an important role in influencing economic growth in Malaysia.
format Article
author Mohd. Yahya, Mohd. Hussin
Muhammad, Fidlizan
Abu @ Hussin, Mohd. Fauzi
Abdul Razak, Azila
author_facet Mohd. Yahya, Mohd. Hussin
Muhammad, Fidlizan
Abu @ Hussin, Mohd. Fauzi
Abdul Razak, Azila
author_sort Mohd. Yahya, Mohd. Hussin
title Education expenditure and economic growth: a causal analysis for Malaysia
title_short Education expenditure and economic growth: a causal analysis for Malaysia
title_full Education expenditure and economic growth: a causal analysis for Malaysia
title_fullStr Education expenditure and economic growth: a causal analysis for Malaysia
title_full_unstemmed Education expenditure and economic growth: a causal analysis for Malaysia
title_sort education expenditure and economic growth: a causal analysis for malaysia
publisher International Institute for Science, Technology and Education (IISTE)
publishDate 2012
url http://eprints.utm.my/id/eprint/31766/
http://www.iiste.org/Journals/index.php/JEDS/article/download/2047/2026
_version_ 1643648845751517184
score 13.211869

Similar Items