Income inequality in Malaysia

Haji Mat Zin Ragayah

    Research output: Contribution to journalArticle

    20 Citations (Scopus)

    Abstract

    The objective of this paper is to examine the changes in Malaysian income distribution during the last three and a half decades and the reasons for the changes. It was found that the Gini ratio for Malaysia peaked in 1976 and fell thereafter to 1990. However, inequality seems to reverse its direction since then. Policies that could explain the changes in income distribution include the promotion of export-oriented industrialization, education, and training, and the restructuring of equity ownership and assistance in asset accumulation. While the various other redistributive measures in the form of rural development helped in poverty eradication, their effectiveness in redistribution needs to be improved. Several hypotheses have been forwarded to explain the widening of income inequality after 1990. These include the difference in the growth rates of incomes of the rural and urban areas, trade and globalization, and impediments to the process of internal migration.

    Original languageEnglish
    Pages (from-to)114-132
    Number of pages19
    JournalAsian Economic Policy Review
    Volume3
    Issue number1
    DOIs
    Publication statusPublished - 2008

    Fingerprint

    income distribution
    Malaysia
    income
    internal migration
    difference in income
    education and training
    rural development
    redistribution
    industrialization
    equity
    ownership
    globalization
    rural area
    poverty
    restructuring
    assets
    urban area
    promotion
    assistance
    education

    Keywords

    • Gini ratio
    • Growth with equity
    • Income distribution
    • Inequality
    • New Economic Policy

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)
    • Management, Monitoring, Policy and Law
    • Political Science and International Relations

    Cite this

    Income inequality in Malaysia. / Ragayah, Haji Mat Zin.

    In: Asian Economic Policy Review, Vol. 3, No. 1, 2008, p. 114-132.

    Research output: Contribution to journalArticle

    Ragayah, Haji Mat Zin. / Income inequality in Malaysia. In: Asian Economic Policy Review. 2008 ; Vol. 3, No. 1. pp. 114-132.
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