Information and Communication Technology (ICT) and human capital management trend in Malaysia's economic development

Jorah Ramlan and Elsadig Ahmed

Applied Economics Letters, 2009, vol. 16, issue 18, 1881-1886

Abstract: Testing for stationarity, cointegration and structural break for the ICT data are significant to determine Malaysia's economic growth. This article finds that the ICT follows similar trend as Gross Domestic Product (GDP), capital and employment data. The cointegration test suggests that ICT follows a long-run equilibrium in relation to GDP, capital and employment variables. The test for parameter instability for ICT indicates 1986 as the breakpoint, which is indicative of the structural transformation in Malaysia's economy. This is crucial finding as it provides more conclusive evidence on structural breakpoint in Malaysia's economic data, as opposed to noneconometric method. Human capital is synonymous to knowledge accumulation, thus significant in the development of the ICT and long-run economic growth.

Date: 2009
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DOI: 10.1080/13504850701719637

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