Egypt and Malaysia: Investment, Education and Economic Growth

Noor Mohamad ElGhorab


Numerous economists have explained economic growth using multiple theories and models, many of which highlight the importance of the accumulation of physical and human capital as the main determinants of growth. This paper aims to study the effect of investment in physical capital and human capital on economic growth and income per capita in Egypt and Malaysia, then develop an inter-relationship between the two forms of capital. The paper argues, using evidence in the form of literature and data, that there is a strong connection between physical and human capital and that sustainable economic growth can only be achieved by investing in both stocks of capital. The paper therefore concludes with a policy recommendation vis- à-vis education in Egypt.


Development; Growth; Economy; Investment; Malaysia; Egypt; Education; Health; Human capital; Capital accumulation; FDI, Spill-over effects; Policy recommendation.

Full Text:



Ahmed, E. M. (2012). Are the FDI inflow spillover effects on Malaysia's economic growth input driven? Economic Modelling,29(4), 1498-1504. doi:10.1016/j.econmod.2012.04.010

CAPMAS: Total expenditure on basic education reaches 6.6 percent of total spending. (n.d.). Egypt Independent. Retrieved from

Choong, C.-K., Lim., K.-P.(2009). Foreign direct investment, financial development, and economic growth: the case of Malaysia. Macroeconomics and Finance in Emerging Market Economies 2(1),13-30.

Choong, C.-K., Yusop, Z., Law, S.-H., & Liew, V.K.-S. (2005). Financial Development and Economic Growth in Malaysia: The Perspective of Stock Market. Investment Management and Financial Innovations,105-108.

Dobronogov, A., Iqbal, F.(2006). Economic growth in egypt: Constraints and determinants. (Working paper No. 0420) Retrieved from

Egypt Programme Profile: Education. (n.d.) UNICEF. Retrieved from

Enders, K. (2007). Egypt-Searching for Binding Constraints on Growth. (Working Paper No. 07/57). Retrieved from International Monetary Fund.

Farid, D. (2015, September 30). Egypt GCI ranking of 116th is first improvement since 2011. Daily News Egypt. Retrieved from

Human Development Reports (2015). Table 1: Human Development Index and its Component. United Nations Human Development Program. Retrieved from

Human Development Reports (2014). Table 2: Human Development Index trends, 1980-2013. United Nations Human Development Program. Retrieved from

Hussein, H. (2014, April 17). Can Egypt afford quality education? Al-Ahram. Retrieved from

Kandil, M. (2013). Human capital in egypt: The road to sustainable development. Cairo;New York;: The American University in Cairo Press.

Loveluck, L. (2012). Education in Egypt: Key Challenges. Middle East and North Africa Programme, Chatham House. Retrieved from

Malaysia Overview. (2015, October ). World Bank. Retrieved December 1, 2015, from

Malaysia performance overview. (n.d). World Economic Forum. Retrieved December 1, 2015, from

Rady, T. (2012). Foreign Direct Investment and Growth: Theory, Evidence and lessons for Egypt. Journal of International Business Research, 11 (1).

Tan, E.C. (2014). Malaysia's Economic Growth and Development: Challenges and the Way Forward. Singapore Economic Review, 59(3), 1-17.

The World Bank, World development Indicators (2015). Retrieved from


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.