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The Impact of Human Capital Development on Economic Growth in Malaysia
Nurul Aqilah binti Nasran
Supervisor: Dr. Noor Haslina binti Mohammad Akhir
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
In the 9th Malaysia Plan, the Federal focuses more on human capital development to
enhance Malaysia's economic growth. Human capital development is the collective skills,
knowledge, or other intangible assets of individuals that considered as a key element in
improving economic value. The objective of this paper is to examine the impact of human
capital development on economic growth in Malaysia, based on time series data covering
1991 until 2015, by running multiple linear regression to capture the results. Education,
skilled labour and net export, being the key variable of human capital while economic
growth is measured in term of Nominal Gross Domestic Product (GDP). The results reveal
the positive effects of human capital developments on economic growth in Malaysia which
the most significant factor to determined nominal GDP is the number of skilled labours.
Keywords: Human Capital Development, economic growth and number of skilled labors.
1501 | UMT UNDERGRADUATE RESEARCH DAY 2018