The Relationship Between Education, Health, Employment and Economic in Malaysia

Economic growths are often used to measure the development of a country. Thus the economic growth is what every economy tries to achieve for good of everyone as a whole. In the other hand education, health and employment are one the most important tool for the economy growth. Malaysia as developing countries concern about the economy growth and done an investment in through it. The general objective of this paper is to examine the relationship between education, health, employment and economic growth in Malaysia from 1982 to 2010. The econometric method is used to examine the relationship between education, health, employment and economic growth. Unit root test indicate that all of the above variables are I(1). Johensen’s test was conducted to see the long run relationship between these variables. Meanwhile the relationship is test by using Ordinary Least Square and the Granger Causality test. The relationship between education with the economic growth are examine by using the literacy rate as education proxy variable. The health variable are examine by using the infant mortality rate, life expectancy and crude death rate with the GDP and the employment are examine by using the total employment rate with the GDP. As conclusion the results shows the positive relationship between the three variables with the economic growth and suggestion to the Malaysia economic to do more investments in this variables. The findings of this study can be used to generate concrete policy reform suggestion and also used as guideline or example for other developing countries.