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The role of education and training in the development of the Malaysian economy

Chung, Tsung Ping (2021) The role of education and training in the development of the Malaysian economy. Doctor of Philosophy (PhD) thesis, University of Kent. (doi:10.22024/UniKent/01.02.85990) (KAR id:85990)


This thesis aims to examine the role of education and training in Malaysia via the analysis of its impact on an individual. To do this, we have used a conventional human capital earnings function. Our findings show that there are positive and high returns to education in Malaysia. Our findings also indicate positive returns to training for a randomly selected group of women extracted from the Malaysian Family Life Survey data sets. This examination on training has been extended to include the determinants of training analysis and we have found that (a) training and education are complements and (b) women tend to be deterred from participating in training if they are credit constrained. The rates of returns to education in Malaysia are updated via the usage of the 1997 Malaysian Household Income Survey data set. The rates of returns to the different levels of

education remain high and positive in Malaysia. We have also been able to form the trends of the returns to education using 6 sets of the Malaysian Household Income Survey data. The returns to education in Malaysia remained stable from 1984 to 1997 with the exception of the tertiary education level, where the returns were increasing over time. In order for the returns to education to be stable over time, the demand for skilled labour must have increased alongside increasing supply of skilled labour. This prediction is confirmed via our demand and supply framework analysis. The results do show that relative demand for skilled labour has increased alongside the rising relative supply of skilled labour. Our results also show that there are higher returns accrued to the higher levels of education, namely at the pre-university and higher education level. This condition of higher returns to higher levels of education is possible given the stages of rapid industrialisation in Malaysia. We conclude this thesis with a brief investigation into how the rates of return estimates can play a more prominent role in the Malaysian skill formation process. This investigation is done with the help of the developmental state skill formation model. We detect a plausible role of the rates of returns to education estimates in the Malaysian skill formation framework. We conclude that the role of education and training in Malaysia has been positive and has the potential to continue doing so

Item Type: Thesis (Doctor of Philosophy (PhD))
DOI/Identification number: 10.22024/UniKent/01.02.85990
Additional information: This thesis has been digitised by EThOS, the British Library digitisation service, for purposes of preservation and dissemination. It was uploaded to KAR on 09 February 2021 in order to hold its content and record within University of Kent systems. It is available Open Access using a Creative Commons Attribution, Non-commercial, No Derivatives ( licence so that the thesis and its author, can benefit from opportunities for increased readership and citation. This was done in line with University of Kent policies ( If you feel that your rights are compromised by open access to this thesis, or if you would like more information about its availability, please contact us at and we will seriously consider your claim under the terms of our Take-Down Policy (
Uncontrolled keywords: Human capital earnings function
Subjects: L Education > L Education (General)
L Education > LC Special aspects of education > LC5201 Education extension. Adult education. Continuing education
J Political Science > JA Political science (General)
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
SWORD Depositor: SWORD Copy
Depositing User: SWORD Copy
Date Deposited: 29 Oct 2019 16:23 UTC
Last Modified: 08 Dec 2022 20:46 UTC
Resource URI: (The current URI for this page, for reference purposes)

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