Impact on poverty and income inequality in Malaysia’s economic growth
-
DOIhttp://dx.doi.org/10.21511/ppm.15(1).2017.05
-
Article InfoVolume 15 2017, Issue #1, pp. 55-62
- Cited by
- 11764 Views
-
5614 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
Poverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.
- Keywords
-
JEL Classification (Paper profile tab)O1, O4
-
References20
-
Tables10
-
Figures0
-
- Table 1. Incidence of poverty by state in percentage, Malaysia, 1970 and 2014
- Table 2. Incidence of poverty by ethnic group in percentage, Malaysia, 1970 and 2014
- Table 3. Interpretation of the correlation coefficient
- Table 4. Mean and standard deviation of poverty (N = 100)
- Table 5. Mean and standard deviation of income inequality
- Table 6. Mean and standard deviation of economy growth
- Table 7. Correlation between poverty and economy growth
- Table 8. Correlation between income inequality and economy growth
- Table 9. Multiple linear regression
- Table 10. R-square of multiple linear regression
-
- Abidin, I.S.Z., Haseeb, M., Azam, M. and Islam, R. (2015). Foreign Direct Investment, Financial Development, International Trade and Energy Consumption: Panel Data Evidence from Selected ASEAN Countries, International Journal of Energy Economics and Policy, 5 (3), pp. 841-850.
- Ahmed, W., Siwar, C., Damanhuri, N.A. and Islam, R. (2012). Understanding Sustainability: Synergetic Views from Environmental and Ecological Economics, Advances in Environmental Biology, 6 (5), pp. 1659-1668.
- Aldosari, M., Ibrahim, Y., Manab, N.A. and Islam, R. (2014). Foreign Workers Satisfaction with Cooperative Health Insurance in Saudi Arabia, Advances in Natural and Applied Sciences, 8 (9), pp. 101-108.
- Azman, A., Sulaiman, J., Mohamad, M.T., Singh, P.S.J., Yahaya, M.H. & Drani, S. (2014). Addressing poverty through innovative policies: A review of the Malaysian experience, International Journal of Social Work and Human Services Practice Horizon Research Publishing, 2 (4), pp. 157-162.
- Berawi, F.M. (2014). Ekonometrik Asas: Analisis regresi dan analisis korelasi. Sintok: Universiti Utara Malaysia.
- Dabla-Norris, E., Kochhar, K., Ricka, F., Suphaphiphat, N. & Tsounta, E. (2015). Causes and consequences of income inequality: A global perspective. International Monetary Fund.
- Economic Planning Unit. (2015). Household Income and Poverty.
- Elhadary, Y.A.E. & Samat, N. (2012). Political economy and urban poverty in the developing countries, Journal of Geography and Geology, 4 (1).
- Hatta, Z. & Ali, I. (2013). Poverty reduction policies in Malaysia: Trends, Strategie and Challenges, Asian Culture and History, 5 (2).
- Hussin, F., Ali, J. & Noor, M.S.Z. (2014). Kaedah penyelidikan & analisis data SPSS. Sintok: Universiti Utara Malaysia.
- Jomo, K.S. (2004). The New Economic Policy and interethnic relations in Malaysia.
- Kutnets, S. (1955). Economic growth and income inequality. The American Economic Review, 45 (1).
- Ling, T.P., Yusof, M.F., Mahmood N.H.N., & Soon T.H. (2014). The implementation of minimum wages in Malaysia. Sains Humanika. 2(2), pp. 43-46.
- Nurkse, R. (1952). Theories of economic growth and development. In Brue, S.L. & Grant, R.R. (7th ed), The evolution of economic thought, USA: Thomson South-Western, pp. 473-491.
- Ogbeidi, E.N.O. & Agu, D.O. (2015). Poverty and income inequality in Nigeria. Any Causality? Asian Economic and Fiancial Review, 5 (3), pp. 439-452.
- Poverties. (2015). Relative vs absolute poverty: Why and how do we measure poverty?
- Ragayah, H.M.Z. (2008). Income inequality in Malaysia. Asian Economic Policy Review, 3, 114-132.
- Rank, M.R. (2001). The effect of poverty on America’s families. Journal of Family Issues, 22 (7), pp. 882-903.
- Saari, M.Y., Dietzenbacherd, E. & Los, B. (2015). Souces of income growth and inequality across ethnic groups in Malaysia, 1970-2000. World Development, 76, pp. 311-328.
- The World Bank. (2015). Malaysia Overview.