Education as Investment in Human Capital

Abstract

Long-term economic growth is linked to education, government spending on education, and health. Economic growth, education, and government investment on education and health tend to have a favourable relationship in the long run. Human capital development is not a one-time event, but rather a process that takes time. In the medium run, education spending may not have a direct impact on GDP growth. On the other hand, there is no reverse causality between educational traits and economic growth. Because the results are insignificant, education does not produce economic growth in the short run. In the short term, government expenditure will not lead to economic growth. One of the key strategies of Malaysian government policymaking has been the development of human capital.