Masters in Economics (Part 1)

This post was inspired by a comment left by Elanor Tan in regards to whether one should pursue a Masters in Economics locally in Malaysia or go abroad. I thought it would be a good learning experience for me to look at the local offerings in regards to Masters in Economics courses and compare them to similar programs in the UK and the US, something which I'm a little more familiar with.

Assuming that one did his or her undergraduate degree in economics (like the person who left the comment in Elanor's blog) in a local university in Malaysia, the first question that his person should ask is - why exactly do I want to pursue a Masters in Economics? This question is important because it dictates where one should go to pursue one's Masters, whether it is a local program or an overseas program.

For example, if this person is interested in researching a particular aspect of the Malaysian economy (but doesn't want to spend 3 to 5 years on a PhD), it would make more sense for him or her to enroll in a Masters program in a local university. Most, it not all, Masters programs in Economics in UK and US universities are very theoretical and quantitative. Even at the undergraduate level in most UK and US universities, Economics students are required to take numerous quantitative courses -in mathematics (calculus, matrices etc...) as well as statistics (regression, distribution, etc...). I'm guessing that the undergraduate requirements in most Economics programs in Malaysian universities are not as rigorous. A brief glance at the UM faculty of economics and administration website shows that it is possible to take quantitative courses at the undergraduate level but it is unclear if these quantitative courses are required courses. So if one doesn't like math or stats, I would highly discourage you to go to the UK or the US to do a Masters in Economics.

While it is possible to pursue a rigorous quantitative route at the local level, both at the undergraduate and graduate level, there is also the option of obtaining a Masters by dissertation (instead of coursework) at the local level. I'm not familiar with such an option being possible in most US or UK universities, unless it is not a pure Masters in Economics e.g. Masters in Public Administration or a Masters in International Development. So, if you're interested in investigating, for example, the impact of Malaysia's industrialization policy on economic development, I think you would be better served by doing a Masters in a local university, under a knowledgable supervisor, with easy access to local resources.

What if this person wants to do a Masters as the first step towards a PhD in Economics? Some of what I've said above still applies. If you're not quantitatively inclined and if you want to do something which is Malaysia specific, you're better off enrolling in a local program. The downside, however, of enrolling is a local program is that your PhD will be less 'marketable' because, if you've not done sufficient course and if your PhD research design in one that is limited in scope, you'll find that you'll be able to teach only in Malaysian universities. If this is fine with you, then again, by all means, enroll in a local program.

If this person really likes Economics as a subject (and not just one particular aspect of the Malaysian economy) and is not averse to quantitative methods (math and stats), then I'd advise this person to try to enroll in a US or UK university. Most US universities, however, are less inclined to enroll a person seeking only to do a Masters degree program in Economics preferring PhD students instead. Thus, there are not many top-ranked US schools which offer this choice. Some, however, do offer a one or two year Masters in related fields such as a Masters in International Studies (Yale). Nuffied College in Oxford offers a 2 year quantitatively driven Masters program in Economics and both Cambridge and LSE offers a one-year Masters program in Economics which covers the basic theoretical ground in Economics (Micro, Macro, Stats) for further graduate work.

So it this person is intersted in Economics but only wants to do it at the Masters level, then apply to a UK university. If this person wants to do a Masters as a step towards a PhD degree, then apply to a US university.

Finally, what is this person just wants to get a Masters in a field which would advance his or her career? Then, I would suggest that you consider taking an MBA instead of a Masters in Economics. An MBA is a much more widely recognized degree and it covers a much broader area than a Masters in Economics. Of course, the next question would be - a local MBA or an overseas one? This is perhaps a subject for another post, but my general recommendation is that if you don't have too many restrictions (family, financial), apply to go to an MBA school overseas, preferably in the US (although LBS in London and INSEAD in Fontainebleu, France are also good options in Europe).

To recap, enroll in a local Masters program in Economics if:

(1) You are not quantitatively driven
(2) You want to research a particular aspect of the Malaysian economy
(3) You have other personal considerations - time, financial, family

enroll in a Masters program in Economics in the UK if:

(1) You don't mind quantitative methods
(2) You like Economics but you're not sure if you want to do a PhD in Economics
(3) You want to finish this Masters in one year
(4) You don't have other personal restrictions

enroll in a Phd program in Economics in the US if:

(1) You like quantitative methods
(2) You are quite sure you want to pursue a PhD in Economics
(3) Your area of interest in economics is not necessarily restricted just to Malaysia.

enroll in a MBA program if:

(1) You are seeking a Masters degree in general for career advancement and are not particular interested in Economics but just want to get an advanced degree.

These are generalizations and does not apply to all situations or to all people. Take it with a pinch of salt. As to which local university one should try to enroll in, that is the subject of another post.

P.S. For those who might not know, I did my BSc in Economics at the LSE and my MPhil in Economics in Cambridge. I'm currently doing my PhD in political science at Duke University. One of these days, I'll share in more detail my positive and negative experiences associated with my education in the UK as well as the US.