UUM Electronic Theses and Dissertation
UUM ETD | Universiti Utara Malaysian Electronic Theses and Dissertation
FAQs | Feedback | Search Tips | Sitemap

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

Chew, Xiao Chin (2013) An empirical study on the relationship between government expenditure on education and economic growth in Malaysia. Masters thesis, Universiti Utara Malaysia.

[thumbnail of s811906.pdf] Text
s811906.pdf
Restricted to Registered users only

Download (2MB)
[thumbnail of s811906_abstract.pdf]
Preview
Text
s811906_abstract.pdf

Download (905kB) | Preview

Abstract

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

Item Type: Thesis (Masters)
Supervisor : Samsudin, Shamzaeffa
Item ID: 5176
Uncontrolled Keywords: Education, Economic growth, Granger causality, Expenditure on education
Subjects: H Social Sciences > HB Economic Theory
L Education > L Education (General)
Divisions: Othman Yeop Abdullah Graduate School of Business
Date Deposited: 15 Nov 2015 04:23
Last Modified: 17 Apr 2016 07:19
Department: Othman Yeop Abdullah Graduate School of Business
Name: Samsudin, Shamzaeffa
URI: https://etd.uum.edu.my/id/eprint/5176

Actions (login required)

View Item
View Item