Measuring the impact of education on economic growth: a comparative study between Egypt and Malaysia during the period (1976-2019)

Document Type : Original Article

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Assistant Professor of Economics - Faculty of Economic Studies and Political Science - Alexandria University

Abstract

This research aimed to analyze and measure the impact of education on economic growth, using annual time series data on Egypt and Malaysia during the period (1976-2019). The study used the Autoregressive Distributed Lags (ARDL) model and the bound test to investigate the co-integration between the study variables. The impact of education on economic growth in both countries was estimated using the ARDL model.
The study concluded that primary school enrolment and secondary school enrolment had a positive and significant impact on economic growth in both Egypt and Malaysia, but the magnitude of the impact was greater in Malaysia. On the other hand, the study did not find an impact of government spending on education on economic growth in both countries. The study also concluded that tertiary education has no statistically significant impact on economic growth in both Egypt and Malaysia. The study also found that capital and foreign trade have a positive and statistically significant impact on economic growth in both Egypt and Malaysia, and that the labor force participation rate had a positive and significant impact only in Malaysia.
The study recommends that we should work to raise the efficiency of education, activate the benefit of tertiary education and increase government spending for education and achieve efficiency from it. The study also recommends that we should work to reduce the unemployment rate because the increase in unemployment rates, especially among learners, wastes the benefit of education. Attention must also be paid to the development of education and linking it to the needs of the labor market, especially in areas related to technology.

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