Why is Human Capital Investment Not Immediate Impact? Investigating the Impact of Human Capital, Financial Capital, and Technological Capital on Economic Growth in Malaysia


  • Dashen Allen University of Birmingham, United Kingdom
  • Benjamin Drean Lycée George Sand, EPL du Velay, France


Human Capital, Financial Capital, Technological Capital, Economic Growth


This study's objective for look at short-term and long-term effects of production parameters
(money, people, technology) on national production (GDP). In this study, the money factor
is indicated by total investment nationally, the human factor is indicated by work
participation (workers), and human capital (total investment in education and health
nationally). Our technology factor uses the indicator of total technology investment
nationally (Total investment in science and technology research and development plus
technology imports). This study uses secondary data obtained from the World Bank for the
period 1985 to 2020. The Distributed’s Autoregressive Lag Method was used in this
research. Some investigation found something about investment to the human resources
cannot be directly felt in the short term because the impact given in investment in human
resources requires a process before it has an impact on national production. However,
financial capital, work participation, and technology can be felt immediately in the short
term. Human Capital are very important. This requires good attention in supporting the
improvement of human capital. Human capital investment is beneficial in the long term
and having a significant effect to the long term.