Income Inequality and Poverty in Malaysia

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Rowman & Littlefield, 1998 - Business & Economics - 243 pages
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This book traces Malaysia's economic expansion and evaluates the success of the government's New Economic Policy (NEP), which was designed to promote national unity by reducing poverty as well as by loosening the link between ethnicity and economic function. As well as providing the first comprehensive analysis of income distribution trends after the inauguration of the NEP, the study also considers interethnic, urban-rural, and regional variations over time. Shireen Hashim shows that poverty and inequality are still rampant, though she demonstrates significant reductions in poverty and declining income inequality. Her thorough analysis and use of previously unpublished data makes this work a key reference on the Malaysian economy.
 

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Contents

PREFACE
v
ACKNOWLEDGMENTS
vii
TABLES
xiii
APPENDICES
xxii
ABBREVIATIONS
xxiii
INTRODUCTION General Background
xxv
Colonial Legacy 17861957
2
PostColonial Scenario 19571969
3
PERSONAL INCOME INEQUALITY IN SABAH AND SARAWAK Trends in Income Inequality
97
Overall Income Inequality
104
Sabah
106
Sarawak
108
UrbanRural Inequality
110
Sabah
111
Sarawak
116
Sabah
120

The New Economic Policy 19701990
4
Scope and Layout
17
Data Sources and Comparability
20
INEQUALITY AND POVERTY MEASURES Income Distribution and Development
26
Regional Income Inequality
30
Poverty
32
Measures of Inequality
34
Absolute Approach
35
Relative Approach
36
Income Inequality
37
Testing Kuznets Hypothesis
39
Regional Inequality
40
Approaches to Studying Malay Poverty
41
Definition of Poverty
43
Empirical Studies of Poverty in Malaysia
44
Poverty
46
Income Inequality
54
TESTING KUZNETS HYPOTHESIS Time Series Data
57
Cross Sectional Data
60
1987
64
1989
65
Conclusion
70
PENINSULAR MALAYSIA PERSONAL INCOME INEQUALITY
76
Overall Economic Inequality
77
UrbanRural Inequality
80
Ethnic Inequality
85
Decomposition of Inequality
90
Sarawak
122
Sabah
124
Sarawak
127
Comparing Sabah and Sarawak to Peninsular Malaysia
129
REGIONAL INEQUALITY Decomposition of Regional Inequality
132
Historical Pattern
135
Regional Labor Participation and Sectoral Distribution
140
POVERTY Calculation of the Official Malaysian Poverty Line
147
Updating the Poverty Line
148
Problems with the Malaysian Poverty Line
155
Peninsular Malaysia
161
Sabah and Sarawak
168
Sabah
169
Sarawak
172
Conclusion
175
EXPLAINING CHANGES IN INCOME DISTRIBUTION AND POVERTY
185
Rural Development Programs
191
Specific Development Programs
193
New Land Development Programs
194
InSitu Development Programs
196
Departmental Programs
204
Human Resource Development
206
Conclusion
217
BIBLIOGRAPHY
229
INDEX
240
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About the author (1998)

Shireen Mardziah Hashim received her Ph.D. in economics from the University of London's School of Oriental and African Studies. She currently works in the private sector in Malaysia.

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