Testing the Causal Relationship between Spending on Education and Economic Growth in Malaysia for the Period 1990-2020

Hadeed, Mohammed Waheed

doi:10.33899/tanra.2023.180489.1302

	Testing the Causal Relationship between Spending on Education and Economic Growth in Malaysia for the Period 1990-2020
TANMIYAT AL-RAFIDAIN
Volume 42, Issue 139, September 2023, Pages 295-307 PDF (718.4 K)
Document Type: Research Paper
DOI: 10.33899/tanra.2023.180489.1302
Author
mohammed Waheed hadeed
Department of Economics, College of Administration and Economics, University of Mosul, Mosul, Iraq
Abstract
The research aims to study the causal relationship between spending on education and economic growth in Malaysia during the period 1990-2020, by relying on the causality test methodology presented by today yamamoto after conducting the Augmented Dickey-Fuller test for the unit root and the AIC test to determine periods of slowdown as well as the random variable tests. As for the research problem, the directions of the causal relationship between spending on education and economic growth may differ due to the different nature of the economic structure, and it may be one way from spending on education to economic growth or vice versa, or it may be two directions, Several conclusions were reached, the most important of which is the existence of a one-way causal relationship between the dependent variable represented by the growth rate of GDP (Y) and the explanatory variable represented by the rate of total spending on education (X1), meaning that the rate of economic growth causes total spending on education at a significant level. Less than (5%) in Malaysia for the period 1990-2020.
Keywords
Economic Growth; Spending on Education; Human Capital; Toda yamamoto causality; Malaysia

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