Are regional incomes in Malaysia converging?

• Published in: Papers in regional science Vol. 94; no. S1; pp. S69 - S94
• Main Authors: Abdullah, Abdul Jabbar, Doucouliagos, Hristos, Manning, Elizabeth
• Format: Journal Article
• Language: English
• Published: Urbana Blackwell Publishing Ltd 01.11.2015
• Subjects: Economic development; Federal state relations; Income inequality; Inequality; Malaysian states; O11; O15; Poverty; regional inequality; spatial spillovers; Studies; Malaysia
• ISSN: 1056-8190; 1435-5957
• DOI: 10.1111/pirs.12105

This paper analyses patterns in regional inequality within and between Malaysia's 14 states, drawing upon estimates of Kuznets/Williamson curves, σ‐ and β‐convergence and spatial spillovers. The path of regional inequality contradicts Kuznets predictions. Regional inequality initially fell but has subsequently risen with further economic development. While Malaysian governments have been successful at reducing poverty, they have been unable to curtail regional inequality in the long run. Resumen Este artículo analiza los patrones de la desigualdad regional dentro de y entre los 14 estados de Malasia, apoyándose en estimaciones de las curvas de Kuznets/Williamson, la σ‐ y β‐ convergencia y spillovers espaciales. La trayectoria de la desigualdad regional contradice las predicciones de Kuznets. La desigualdad regional se redujo inicialmente, pero ha aumentado posteriormente con la llegada de un mayor desarrollo económico. Si bien los gobiernos de Malasia han tenido éxito en la reducción de la pobreza, han sido incapaces de reducir la desigualdad regional a largo plazo.