Urbanization and Human Capital Development in Malaysia

Abstract

This paper investigates the impact of urbanization in Malaysia and human capital development in Malaysia in particular urbanized areas. We argue that the presence of urbanites at the turn of the 20th century has had a positive impact on human capital in Malaysia today. This is evidenced by empirical evidence using the Ordinary Least Squares (OLS) method by adopting the Índice Firjan de Desenvolvimento Municipal (IFDM) method to calculate the human capital development index in Malaysia. We find that the urbanization program has a positive impact on human capital development in Malaysia.