Malaysia-Singapore-Thailand Capital Accumulation Growth (MST-CAG)

Abstract

Paper has presented ideal of capital accumulation growth by using Solow Growth Model for Malaysia, Singapore, and Thailand case. Based on past 10 years by those three countries, the economies have expanded. The investment on infrastructure also shows as a part of country’s sustained economic growth such as telecommunications, electricity and ports. In the same time countries are experiencing a growing in shortage of skilled technical personnel. Then, paper’s objective is to examine whether growth of countries is due to countries’ capital accumulation. This objective brings to research question that “Why do developing countries (Malaysia and Thailand) grow at the same rates as developed one (Singapore)?” Scope of research is started at 1990 and ended at 2013. After analyzing the 24-year data collected and simulating those data with Solow growth model and basic model. Paper shows results as higher savings rate and higher gross fixed capital formation per worker lead to higher investment per person, and pull up steady-state level of capital. Moreover, increasing on literacy rate represents human capital that leads to growth of gross domestic product. Paper also benefits policymakers who are trying to implement such a policy to speed up economy in terms of economic growth and higher standard of livings including the well-being of people.