The less developed states are converging to the richer state in Malaysia: an empirical investigation with some robust results
The present paper addresses the question whether the less developed states, namely; Kedah, Kelantan, Pahang, Perlis, Sabah, Sarawak and Terengganu are converging with the richer state of Selangor, using unit root test and cointegration approach to test for income convergence for the period 1970-2013...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Management, Universiti Putra Malaysia
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/22551/ http://psasir.upm.edu.my/id/eprint/22551/1/19%29%20The%20less%20developed%20states%20are%20converging.pdf |
| _version_ | 1848844515200204800 |
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| author | Habibullah, Muzafar Shah Din, Badariah Sanusi, Nur Azura Abdul Hamid, Baharom |
| author_facet | Habibullah, Muzafar Shah Din, Badariah Sanusi, Nur Azura Abdul Hamid, Baharom |
| author_sort | Habibullah, Muzafar Shah |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The present paper addresses the question whether the less developed states, namely; Kedah, Kelantan, Pahang, Perlis, Sabah, Sarawak and Terengganu are converging with the richer state of Selangor, using unit root test and cointegration approach to test for income convergence for the period 1970-2013. We tested convergence on per capita real GDP for the states involved and the results suggest that the less developed states have been converging to the state of Selangor for the period under study. We also identify two convergence clubs among the states. In this respect, the state government has an important role to play in enhancing growth by continuously providing stable economic environment for investment and other productive economic activities. Without the Five-Year Malaysia Plans, this convergence phenomenon could not have been achieved in Malaysia. To ensure further convergence can take place at a faster rate in the future, government efforts and policies to foster narrowing states’ income disparity has to be enforced further. |
| first_indexed | 2025-11-15T08:32:09Z |
| format | Article |
| id | upm-22551 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:32:09Z |
| publishDate | 2018 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-225512019-11-12T07:11:20Z http://psasir.upm.edu.my/id/eprint/22551/ The less developed states are converging to the richer state in Malaysia: an empirical investigation with some robust results Habibullah, Muzafar Shah Din, Badariah Sanusi, Nur Azura Abdul Hamid, Baharom The present paper addresses the question whether the less developed states, namely; Kedah, Kelantan, Pahang, Perlis, Sabah, Sarawak and Terengganu are converging with the richer state of Selangor, using unit root test and cointegration approach to test for income convergence for the period 1970-2013. We tested convergence on per capita real GDP for the states involved and the results suggest that the less developed states have been converging to the state of Selangor for the period under study. We also identify two convergence clubs among the states. In this respect, the state government has an important role to play in enhancing growth by continuously providing stable economic environment for investment and other productive economic activities. Without the Five-Year Malaysia Plans, this convergence phenomenon could not have been achieved in Malaysia. To ensure further convergence can take place at a faster rate in the future, government efforts and policies to foster narrowing states’ income disparity has to be enforced further. Faculty of Economics and Management, Universiti Putra Malaysia 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/22551/1/19%29%20The%20less%20developed%20states%20are%20converging.pdf Habibullah, Muzafar Shah and Din, Badariah and Sanusi, Nur Azura and Abdul Hamid, Baharom (2018) The less developed states are converging to the richer state in Malaysia: an empirical investigation with some robust results. International Journal of Economics and Management, 12 (spec. 2). pp. 549-566. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol12_noS2/19)%20The%20less%20developed%20states%20are%20converging.pdf |
| spellingShingle | Habibullah, Muzafar Shah Din, Badariah Sanusi, Nur Azura Abdul Hamid, Baharom The less developed states are converging to the richer state in Malaysia: an empirical investigation with some robust results |
| title | The less developed states are converging to the richer state in Malaysia: an empirical investigation with some robust results |
| title_full | The less developed states are converging to the richer state in Malaysia: an empirical investigation with some robust results |
| title_fullStr | The less developed states are converging to the richer state in Malaysia: an empirical investigation with some robust results |
| title_full_unstemmed | The less developed states are converging to the richer state in Malaysia: an empirical investigation with some robust results |
| title_short | The less developed states are converging to the richer state in Malaysia: an empirical investigation with some robust results |
| title_sort | less developed states are converging to the richer state in malaysia: an empirical investigation with some robust results |
| url | http://psasir.upm.edu.my/id/eprint/22551/ http://psasir.upm.edu.my/id/eprint/22551/ http://psasir.upm.edu.my/id/eprint/22551/1/19%29%20The%20less%20developed%20states%20are%20converging.pdf |