An empirical study on the relationship between government expenditure on education and economic growth in Malaysia

The main purpose of this study is to investigate the relationship between education and economic growth. The study is based on annually time series data range from period 1970 until 2010. The indicators for education are government operating expenditure and government development expenditure in ed...

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Main Author:	Chew, Xiao Chin
Format:	Thesis
Language:	eng eng
Published:	2013
Subjects:	HB Economic Theory L Education (General)
Online Access:	https://etd.uum.edu.my/5176/1/s811906.pdf https://etd.uum.edu.my/5176/2/s811906_abstract.pdf
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id	my-uum-etd.5176
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Samsudin, Shamzaeffa
topic	HB Economic Theory L Education (General)
spellingShingle	HB Economic Theory L Education (General) Chew, Xiao Chin An empirical study on the relationship between government expenditure on education and economic growth in Malaysia
description	The main purpose of this study is to investigate the relationship between education and economic growth. The study is based on annually time series data range from period 1970 until 2010. The indicators for education are government operating expenditure and government development expenditure in education sector. Following the endogenous growth theory, log linear model is build based on Cobb Douglas production function. In order to answer the three objectives in this study, the tests been carried out included Augument Dikey Fuller test (ADF) test to test unit root, Ordinary Least Squares (OLS) test to estimate how dependent variable changes when there is an increase in independent variables, Johansen cointegration test to investigate the existence of long run relationship in the model and Granger causality test to determine the direction of causality between all variables. The finding of the study is consistent with most of the empirical studies and theory where there is a long run relationship between education and economic growth. Besides that, the estimated results show that operating expenditure is relatively bring more impact to gross domestic product compared to development expenditure. In addition, the empirical evidence demonstrates that operating expenditure exits bilateral causality relationship with economic growth
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Chew, Xiao Chin
author_facet	Chew, Xiao Chin
author_sort	Chew, Xiao Chin
title	An empirical study on the relationship between government expenditure on education and economic growth in Malaysia
title_short	An empirical study on the relationship between government expenditure on education and economic growth in Malaysia
title_full	An empirical study on the relationship between government expenditure on education and economic growth in Malaysia
title_fullStr	An empirical study on the relationship between government expenditure on education and economic growth in Malaysia
title_full_unstemmed	An empirical study on the relationship between government expenditure on education and economic growth in Malaysia
title_sort	empirical study on the relationship between government expenditure on education and economic growth in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2013
url	https://etd.uum.edu.my/5176/1/s811906.pdf https://etd.uum.edu.my/5176/2/s811906_abstract.pdf
_version_	1747827878087622656
spelling	my-uum-etd.51762022-04-10T02:48:57Z An empirical study on the relationship between government expenditure on education and economic growth in Malaysia 2013 Chew, Xiao Chin Samsudin, Shamzaeffa Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HB Economic Theory L Education (General) The main purpose of this study is to investigate the relationship between education and economic growth. The study is based on annually time series data range from period 1970 until 2010. The indicators for education are government operating expenditure and government development expenditure in education sector. Following the endogenous growth theory, log linear model is build based on Cobb Douglas production function. In order to answer the three objectives in this study, the tests been carried out included Augument Dikey Fuller test (ADF) test to test unit root, Ordinary Least Squares (OLS) test to estimate how dependent variable changes when there is an increase in independent variables, Johansen cointegration test to investigate the existence of long run relationship in the model and Granger causality test to determine the direction of causality between all variables. The finding of the study is consistent with most of the empirical studies and theory where there is a long run relationship between education and economic growth. Besides that, the estimated results show that operating expenditure is relatively bring more impact to gross domestic product compared to development expenditure. In addition, the empirical evidence demonstrates that operating expenditure exits bilateral causality relationship with economic growth 2013 Thesis https://etd.uum.edu.my/5176/ https://etd.uum.edu.my/5176/1/s811906.pdf text eng public https://etd.uum.edu.my/5176/2/s811906_abstract.pdf text eng public masters masters Universiti Utara Malaysia Adawo, M. A., (2011). Has Education (Human Capital) Contributed to the Economic Growth of Nigeria?. Journals of Economics and International Finance 3(1), 46-58. Afzal, M., Farook, M. S., Ahmed, H. K., Begum, I. & Quddus, M. A., (2010). Relationship between School Education and Economic Growth in Pakistan: ARDL Bounds Testing Approach to Cointegration, Pakistan Economic and Social Review 48(1), 39-60. Babalola, S. J., (2011). Long-Run Relationship between Education and Economic Growth: Evidence from Nigeria. International Journal of Humanities and Social Science, 1(14), 123-128. Babatunde, M. A. & Adefabi, R. A., (2005). 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An empirical study on the relationship between government expenditure on education and economic growth in Malaysia

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