Regional income disparities in Malaysia: A stochastic convergence analysis

For the last four decades, income disparities across states in Malaysia continue to be a matter of concern. The existence of regional inequalities and the prospect that these inequalities may widen were recognized by the Malaysian government. The eight volumes of the 5-Year Malaysia Plan reflect t...

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Main Authors:	Muzafar Shah Habibullah, AM Dayang-Affizzah, Chin-Hong, Puah
Format:	Article
Language:	English
Published:	Faculty of Social Sciences and Humanities, UKM,Bangi 2012
Online Access:	http://journalarticle.ukm.my/5518/ http://journalarticle.ukm.my/5518/ http://journalarticle.ukm.my/5518/1/artikel9.pdf

id	ukm-5518
recordtype	eprints
spelling	ukm-55182016-12-14T06:38:41Z http://journalarticle.ukm.my/5518/ Regional income disparities in Malaysia: A stochastic convergence analysis Muzafar Shah Habibullah, AM Dayang-Affizzah, Chin-Hong, Puah For the last four decades, income disparities across states in Malaysia continue to be a matter of concern. The existence of regional inequalities and the prospect that these inequalities may widen were recognized by the Malaysian government. The eight volumes of the 5-Year Malaysia Plan reflect the determination of the Malaysian government in alleviating if not totally eradicating the problem of regional or state level imbalances. The recent Ninth Malaysia Plan has again emphasized regional development policies in bridging the gap of regional disparities for the next five years. Using annual data for the period 1965 to 2003, the stochastic convergence definition suggested by Bernard and Durlauf (1995), univariate unit root tests suggested by Oxley and Greasley (1995) and panel unit root testing procedures proposed by Levin et al. (2002), Im et al. (1997) and Maddala and Wu (1999), our findings strongly support the stochastic convergence of catching up hypothesis for six regions in Malaysia. An important implication of this study is that Malaysia’s regional development policies, on average, have had a positive impact on the per capita income in all of the six regions. Faculty of Social Sciences and Humanities, UKM,Bangi 2012-08 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/5518/1/artikel9.pdf Muzafar Shah Habibullah, and AM Dayang-Affizzah, and Chin-Hong, Puah (2012) Regional income disparities in Malaysia: A stochastic convergence analysis. Geografia : Malaysian Journal of Society and Space, 8 (5). pp. 100-111. ISSN 2180-2491 http://www.ukm.my/geografia/v2/index.php?
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	For the last four decades, income disparities across states in Malaysia continue to be a matter of concern. The existence of regional inequalities and the prospect that these inequalities may widen were recognized by the Malaysian government. The eight volumes of the 5-Year Malaysia Plan reflect the determination of the Malaysian government in alleviating if not totally eradicating the problem of regional or state level imbalances. The recent Ninth Malaysia Plan has again emphasized regional development policies in bridging the gap of regional disparities for the next five years. Using annual data for the period 1965 to 2003, the stochastic convergence definition suggested by Bernard and Durlauf (1995), univariate unit root tests suggested by Oxley and Greasley (1995) and panel unit root testing procedures proposed by Levin et al. (2002), Im et al. (1997) and Maddala and Wu (1999), our findings strongly support the stochastic convergence of catching up hypothesis for six regions in Malaysia. An important implication of this study is that Malaysia’s regional development policies, on average, have had a positive impact on the per capita income in all of the six regions.
format	Article
author	Muzafar Shah Habibullah, AM Dayang-Affizzah, Chin-Hong, Puah
spellingShingle	Muzafar Shah Habibullah, AM Dayang-Affizzah, Chin-Hong, Puah Regional income disparities in Malaysia: A stochastic convergence analysis
author_facet	Muzafar Shah Habibullah, AM Dayang-Affizzah, Chin-Hong, Puah
author_sort	Muzafar Shah Habibullah,
title	Regional income disparities in Malaysia: A stochastic convergence analysis
title_short	Regional income disparities in Malaysia: A stochastic convergence analysis
title_full	Regional income disparities in Malaysia: A stochastic convergence analysis
title_fullStr	Regional income disparities in Malaysia: A stochastic convergence analysis
title_full_unstemmed	Regional income disparities in Malaysia: A stochastic convergence analysis
title_sort	regional income disparities in malaysia: a stochastic convergence analysis
publisher	Faculty of Social Sciences and Humanities, UKM,Bangi
publishDate	2012
url	http://journalarticle.ukm.my/5518/ http://journalarticle.ukm.my/5518/ http://journalarticle.ukm.my/5518/1/artikel9.pdf
first_indexed	2023-09-18T19:44:22Z
last_indexed	2023-09-18T19:44:22Z
_version_	1777405801028124672

Regional income disparities in Malaysia: A stochastic convergence analysis

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