Districtwide Employment and Population Growth : the Case of Malaysia

Abstract

Since the economic growth has human capital as a source, the objective of this study is to explore the determinants of population and employment growth from a broader interregional perspective and to provide some empirical evidence of the role of human capital as a source of economic growth.  Endogenous growth theory suggests that human capital serves not only as a productive input along with labor, but also as an important source of long-run economic growth.  Other determinants of population and employment growth are scale of the industry and agglomeration economies.  In this investigation, we use time series data for Malaysian economy.  We employed a simultaneous equations model where population is related to employment level, agglomeration economies, and some other factors; and employment is related to population level, agglomeration economies, and some other factors.