Has Kelantan Grown Faster than Other States in Malaysia? A Panel Data Analysis

Awang Marikan, D. A. and Habibullah, M. S. and Smith, P. (2011) Has Kelantan Grown Faster than Other States in Malaysia? A Panel Data Analysis. Jurnal Ekonomi Malaysia, 45. pp. 53-59. ISSN 0126-1962

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Abstract

Kelantan has been the poorest state in Malaysia for the past five decades. Despite the various Malaysian Development Plans for the past several decades, regional disparity between states remains in Malaysia. Thus, the objective of thepresent paper is to address the question whether Kelantan has been narrowing their income gap with other states in Malaysia. Using annual data for the period 1961 to 2003, our panel unit root test result suggest that (1) Kelantan converges towards Kedah, Negeri Sembilan, Perak, Pahang, Perlis and Selangor; (2) Kelantan is catching-up to Johor, Melaka, Penang, Sabah, Terengganu and Wilayah Persekutuan; and (3) Kelantan show divergence with Sarawak. In this respect, the government has an important role to play in enhancing growth by continuously providing stable economic environment for investment and other productive economic activities. This will ensure full convergence can take place in the future.

Item Type: Article
Uncontrolled Keywords: regional disparity; malaysia; panel data analysis, catching-up; convergence; income disparity; regional inequalities, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HM Sociology
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Karen Kornalius
Date Deposited: 20 Mar 2014 06:24
Last Modified: 02 Mar 2017 06:23
URI: http://ir.unimas.my/id/eprint/1277

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