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.

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