The Dynamic Impact of Government Expenditure in Education on Economic Growth

The focal aim of this study is to examine the validation education-led economic growth hypothesis in Malaysia under recovery period following 2008 world crisis. Specifically, implemented augmented Cobb-Douglas model order observe dynamic relationship between selected variables including, industrial production index, gross fixed capital formation, employment, government spending on education and broad money supply. This adopted Vector Error Correction Model (VECM) analysing impact generally supports short long run. Specifically corroborates bidirectional causality growth, vice versa, result also reveals that long-run equilibrium exists expenditure during post-crisis regime. can thus be inferred for economy should advised increasing sector increase both further strengthened by Granger test which suggests unidirectional runs from financial variable growth. It accordingly suggested a determinant aftermath Additionally, role employment term. By implication, planning as related national policies must carefully meticulously crafted, ensure future success. linked investment human includes at different levels essentially important long-term planning. specific development therefore very incurred contributes sustainable