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ISSN 2063-5346
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INCLUSIVE GROWTH: EMPIRICAL EVIDENCE FROM MALAYSIA

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Yogambigai Rajamoorthy , Subramaniam Munusamy, Aye Aye Khin , Fanyu Chen
» doi: 10.31838/ecb/2023.12.s2.363

Abstract

Inclusive growth is the major issue discussed in post COVID-19 pandemic. Certainly, policy maker should restructure the government's incentive program with more focus on health to economic development programs. This study investigates the economic growth effect of inclusive growth variables, proposed by the Asian Development Bank, by employing the Ordinary Least Squares (OLS) estimator. The result indicates that employment in industry and mortality underage of 5, respectively representing labour demand and labour supply, significantly affect economic growth. This indicates that the labour market plays a key role in shaping inclusive growth in Malaysia. The policymakers are advised to pay greater attention to promote and widen the public employment services in the labour market. Therefore, an optimal match between employer and job seeker, with an optimal match between skilled and unskilled could be realized. Since labour earning is an important source of income for most individuals, an inclusive labour market is key for ensuring inclusive growth in Malaysia.

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