Pengaruh Modal Manusia Terhadap Pertumbuhan Produktiviti Faktor Keseluruhan di Negara ASEAN+3 Terpilih

Translated title of the contribution: The impact of human capital on total factor productivity growth in ASEAN+3 selected countries

Noorazeela Zainol Abidin, Ishak Yussof, Rahmah Ismail, Zulkefly Abdul Karim

Research output: Contribution to journalArticle

Abstract

Comparative analyses between countries showed that there are differences in terms of human capital quality and its contribution to Total Factor Productivity Growth (TFP). Even though there are countries with longer average years of schooling, their human capital contribution to TFP growth is lower than countries with shorter average years of schooling. Further, it was found that a country with many skilled workers does not necessarily contribute considerably to TFP growth. Therefore, this article is aimed to analyse the impact of human capital on TFP growth with specific focus on selected ASEAN+3 countries (Malaysia, Singapore, Thailand, Indonesia, Philippines, Cambodia, Vietnam, China, South Korea, and Japan) for the period of 1981to 2014. The analysis used dynamic heterogenous panel methods which are the Pooled Mean Group (PMG) and the Mean Group (MG) models to analyse the variables' influence in the short and long terms. Based on the Hausman test, the PMG model proved to be better for this study as it failed to reject the null hypothesis. The results showed that the influence of human capital, average years of schooling, and ratio of skilled workers were significant and positive for long-term TFP growth under the PMG model, while in the short term, the variables were insignificant to the growth of TFP. In addition, the results of the study showed that in the long-term PMG model, other variables such as openness of the economy, government spending on Research and Development (R&D), the interaction between countries, and the average years of schooling have a significant negative relationship to TFP growth. As human capital can influence the growth of TFP, each country needs to allocate more expenditure to the education sector as human capital has a positive impact in the long run. This is especially in terms of the provision of more scholarships to students who wish to pursue higher education. Additionally, the fields of study offered should also be in line with the labour market demand. In order to produce a highly educated and skilled workforce, emphasis should be given towards a more rigorous training plan.

Original languageMalay
Pages (from-to)57-74
Number of pages18
JournalJurnal Ekonomi Malaysia
Volume52
Issue number3
DOIs
Publication statusPublished - 1 Jan 2018

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Human capital
Total factor productivity growth
Schooling
Skilled workers
Labour market
Japan
Workforce
Singapore
Expenditure
Thailand
Indonesia
Hausman test
Government spending
Market demand
Cambodia
Interaction
Malaysia
Openness
China
Philippines

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Pengaruh Modal Manusia Terhadap Pertumbuhan Produktiviti Faktor Keseluruhan di Negara ASEAN+3 Terpilih. / Abidin, Noorazeela Zainol; Yussof, Ishak; Ismail, Rahmah; Abdul Karim, Zulkefly.

In: Jurnal Ekonomi Malaysia, Vol. 52, No. 3, 01.01.2018, p. 57-74.

Research output: Contribution to journalArticle

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