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 Her thorough analysis and use of previously unpublished data makes this work a key reference on the Malaysian economy.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
vii
ACKNOWLEDGMENTS
ix
TABLES
xv
APPENDICES
xxiv
ABBREVIATIONS
xxv
INTRODUCTION General Background
1
Colonial Legacy 17861957
4
PostColonial Scenario 19571969
5
Decomposition of Inequality
92
PERSONAL INCOME INEQUALITY IN SABAH AND SARAWAK Trends in Income Inequality
99
Overall Income Inequality
106
Sabah
108
Sarawak
110
UrbanRural Inequality
112
Sabah
113
Sarawak
118

The New Economic Policy 19701990
6
Scope and Layout
19
Data Sources and Comparability
22
INEQUALITY AND POVERTY MEASURES Income Distribution and Development
28
Regional Income Inequality
32
Poverty
34
Measures of Inequality
36
Absolute Approach
37
Relative Approach
38
Income Inequality
39
Testing Kuznets Hypothesis
41
Regional Inequality
42
Approaches to Studying Malay Poverty
43
Definition of Poverty
45
Empirical Studies of Poverty in Malaysia
46
Poverty
48
Income Inequality
56
TESTING KUZNETS HYPOTHESIS Time Series Data
59
Cross Sectional Data
62
1984
63
1987
66
1989
67
Conclusion
72
PENINSULAR MALAYSIA PERSONAL INCOME INEQUALITY
78
Overall Economic Inequality
79
UrbanRural Inequality
82
Ethnic Inequality
87
Sabah
122
Sarawak
124
Sabah
126
Sarawak
129
Comparing Sabah and Sarawak to Peninsular Malaysia
131
REGIONAL INEQUALITY Decomposition of Regional Inequality
134
Historical Pattern
137
Regional Labor Participation and Sectoral Distribution
142
POVERTY Calculation of the Official Malaysian Poverty Line
149
Updating the Poverty Line
150
Problems with the Malaysian Poverty Line
157
Peninsular Malaysia
163
Sabah and Sarawak
170
Sabah
171
Sarawak
174
Conclusion
177
EXPLAINING CHANGES IN INCOME DISTRIBUTION AND POVERTY
187
Rural Development Programs
193
Specific Development Programs
195
New Land Development Programs
196
InSitu Development Programs
198
Departmental Programs
206
Human Resource Development
208
Conclusion
219
BIBLIOGRAPHY
231
INDEX
242
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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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