The impact of education on economic growth: The case of Malaysia

This paper studies the relationship between education and economic growth in Malaysia. We examine the relationship between educational variables and gross domestic product (GDP). This paper focuses on human capital as a one of determinant of economic growth. The problem statement of this study was that, does the education attainment of the population can help to increase the economic growth? Our main result suggest that there exists a co-integrating relationship between education as measured by enrollments rates in primary, secondary and higher education and the GDP per capita. Malaysian annual data were collected over twenty six-year period starting from 1980 up to 2005. The Methodology employed is the standard co-integration analysis