Has Kelantan grown faster than other states in Malaysia? A panel data analysis

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 the present paper is to address the question whether Kelantan has be...

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Main Authors: Habibullah, Muzafar Shah, Smith, Peter, Awang Marikan, Dayang Affizah
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22811/
http://psasir.upm.edu.my/id/eprint/22811/1/Has%20Kelantan%20grown%20faster%20than%20other%20states%20in%20Malaysia.pdf
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author Habibullah, Muzafar Shah
Smith, Peter
Awang Marikan, Dayang Affizah
author_facet Habibullah, Muzafar Shah
Smith, Peter
Awang Marikan, Dayang Affizah
author_sort Habibullah, Muzafar Shah
building UPM Institutional Repository
collection Online Access
description 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 the present 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.
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spelling upm-228112015-09-14T02:43:06Z http://psasir.upm.edu.my/id/eprint/22811/ Has Kelantan grown faster than other states in Malaysia? A panel data analysis Habibullah, Muzafar Shah Smith, Peter Awang Marikan, Dayang Affizah 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 the present 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. Penerbit Universiti Kebangsaan Malaysia 2011 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22811/1/Has%20Kelantan%20grown%20faster%20than%20other%20states%20in%20Malaysia.pdf Habibullah, Muzafar Shah and Smith, Peter and Awang Marikan, Dayang Affizah (2011) Has Kelantan grown faster than other states in Malaysia? A panel data analysis. Jurnal Ekonomi Malaysia, 45. pp. 53-59. ISSN 0126-1962 http://www.ukm.my/fep/jem/content/2011.html
spellingShingle Habibullah, Muzafar Shah
Smith, Peter
Awang Marikan, Dayang Affizah
Has Kelantan grown faster than other states in Malaysia? A panel data analysis
title Has Kelantan grown faster than other states in Malaysia? A panel data analysis
title_full Has Kelantan grown faster than other states in Malaysia? A panel data analysis
title_fullStr Has Kelantan grown faster than other states in Malaysia? A panel data analysis
title_full_unstemmed Has Kelantan grown faster than other states in Malaysia? A panel data analysis
title_short Has Kelantan grown faster than other states in Malaysia? A panel data analysis
title_sort has kelantan grown faster than other states in malaysia? a panel data analysis
url http://psasir.upm.edu.my/id/eprint/22811/
http://psasir.upm.edu.my/id/eprint/22811/
http://psasir.upm.edu.my/id/eprint/22811/1/Has%20Kelantan%20grown%20faster%20than%20other%20states%20in%20Malaysia.pdf