Income disparity in two rice farming villages in Malaysia
2009
Terano, R. | Fujimoto, A.
Malaysia has achieved dramatic economic growth since the late 1980s, largely due to multi-national companies investing foreign capital in industrial zones in the west coast. GDP [gross domestic product] share of the manufacturing sector increased from 16.8% in 1980 to 31.4% in 2005. As this industrialization has been concentrated in the west coast, they expect to see a situation of economic imbalance between the west and east coasts of the Malaysian peninsula. It is therefore necessary to study the reality of income disparity and indicate the nature of inequality in relation to the regional, household and individual levels. Also by clarifying inequality in two villages among rice farm households, they can specify the factors which have influenced inequality between the two villages and within each. Interview surveys were conducted in 2006 and 2007 in Sebrang Prai and Kelantan at total of 42 and 39 farm households were studied, respectively. This paper aims 1) to identify economic standing on the east and west coast under different geographical conditions; 2) to clarify the current situation of income distribution at the household and individual levels in both villages; and 3) to examine factors responsible for determining total income among farm households.
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