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Economic Growth And Income Inequality In Malaysia, 1971–95

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  • Ishak Shari

Abstract

This article investigates trends in income inequality in Malaysia for the period 1970–95 based on published aggregated household income data, and places these trends within the broader economic policy framework of the period. An important issue addressed here is the extent to which the observed trends in income inequality can be linked directly to the different policies implemented by the government. This study shows that general development policies implemented under the New Economic Policy have had a major impact on reducing income inequality in Malaysia from the late 1970s. However, since 1990 there is a trend towards rising income inequality, both overall and with inter-ethnic as well as urban-rural income disparities. It is suggested that the government policy reversal towards liberalization, deregulation and privatization since the late 1980s has contributed to this trend of increasing inequality.

Suggested Citation

  • Ishak Shari, 2000. "Economic Growth And Income Inequality In Malaysia, 1971–95," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 5(1-2), pages 112-124.
    • Handle: RePEc:taf:rjapxx:v:5:y:2000:i:1-2:p:112-124
    DOI: 10.1080/13547860008540786
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    Cited by:

    1. Jun Zhao & Xiucheng Dong & Kangyin Dong, 2021. "Can agglomeration of producer services reduce urban–rural income inequality? The case of China," Australian Economic Papers, Wiley Blackwell, vol. 60(4), pages 736-762, December.
    2. Ziroat Mirziyoyeva & Raufhon Salahodjaev, 2022. "Women’s Parliamentary Representation and Sustainable Development Goals: a Cross-Country Evidence," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(2), pages 871-883, April.
    3. M. Yusof Saari & Erik Dietzenbacher & Bart Los, 2014. "Income Distribution across Ethnic Groups in Malaysia: Results from a New Social Accounting Matrix," Asian Economic Journal, East Asian Economic Association, vol. 28(3), pages 259-278, September.
    4. Shahiri, Hazrul Izuan, 2012. "An Analysis of the Reduction of the Ethnic Economic Gap in Malaysia under the New Economy Policy: Evidence from Ethnic Occupation Segregation and Wage Differential," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 46(2), pages 127-139.
    5. Khalid, Muhammed Abdul & Yang, Li, 2021. "Income inequality and ethnic cleavages in Malaysia: Evidence from distributional national accounts (1984–2014)," Journal of Asian Economics, Elsevier, vol. 72(C).
    6. Adediran, Ibrahim Opeyemi & Masih, Mansur, 2018. "Oil price and the global conventional and islamic stock markets: Is the relationship symmetric or asymmetric ? evidence from nonlinear ARDL," MPRA Paper 91558, University Library of Munich, Germany.
    7. Hasanul Banna & Muhammad Mehedi Masud & Shamsulbahriah K. A. Rodrigo, 2020. "How does economic growth impact on income inequality across ethnic groups in Malaysia?," Poverty & Public Policy, John Wiley & Sons, vol. 12(4), pages 397-420, December.
    8. Obiakor, Rowland & Akpa, Emeka & Okwu, Andy, 2022. "Economic Size, Uncertainty, and Income Inequality in Nigeria," MPRA Paper 113637, University Library of Munich, Germany.
    9. Saleem Khan & Salman Azad Khan & Muhammad Tariq, 2016. "The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan9apos9s Data," Global Economics Review, Humanity Only, vol. 1(1), pages 24-35, December.
    10. M Niaz Asadullah & Norma Mansor & Antonio Savoia, 2019. "Explaining a ‘development miracle’: poverty reduction and human development in Malaysia since the 1970s," Global Development Institute Working Paper Series 382019, GDI, The University of Manchester.

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