Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah?

This paper used a primary data collected through a surveys among farmers in rural Kedah to examine the effect of non farm income on poverty and income inequality.This paper employed two method, for the first objective which is to examine the impact of non farm income to poverty, we used poverty deco...

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Main Authors: Che Mat, Siti Hadijah, Abdul Jalil, Ahmad Zafarullah, Harun, Mukaramah
Format: Article
Language:English
Published: Elsevier Ltd 2012
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/16676/1/1-s2.0.pdf
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author Che Mat, Siti Hadijah
Abdul Jalil, Ahmad Zafarullah
Harun, Mukaramah
author_facet Che Mat, Siti Hadijah
Abdul Jalil, Ahmad Zafarullah
Harun, Mukaramah
author_sort Che Mat, Siti Hadijah
collection UUM
description This paper used a primary data collected through a surveys among farmers in rural Kedah to examine the effect of non farm income on poverty and income inequality.This paper employed two method, for the first objective which is to examine the impact of non farm income to poverty, we used poverty decomposition techniques- Foster, Greer and Thorbecke (FGT) as has been done by Adams (2004).For the second objective, which is to examine the impact of non farm income to income inequality, we used Gini decomposition techniques. Our result indicate that non farm income can improve the level of poverty or non farm income sources contributed towards poverty reduction among agricultural household.All of the poverty measures show that the inclusion of non-farm income into the agricultural household income reduce the level, depth and severity of poverty. But on the other hand, non farm income increased income inequality among agricultural household in Kedah.As expected agricultural income is the main source of income for rural people in the study area.The policy implication of this study is to encourage non-farm income activities among agricultural households as this would raise their income and hence, reduce poverty among them. However, it should be focused on value-added activities, especially on the lower income group
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spelling uum-166762016-04-20T01:28:36Z https://repo.uum.edu.my/id/eprint/16676/ Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah? Che Mat, Siti Hadijah Abdul Jalil, Ahmad Zafarullah Harun, Mukaramah HC Economic History and Conditions This paper used a primary data collected through a surveys among farmers in rural Kedah to examine the effect of non farm income on poverty and income inequality.This paper employed two method, for the first objective which is to examine the impact of non farm income to poverty, we used poverty decomposition techniques- Foster, Greer and Thorbecke (FGT) as has been done by Adams (2004).For the second objective, which is to examine the impact of non farm income to income inequality, we used Gini decomposition techniques. Our result indicate that non farm income can improve the level of poverty or non farm income sources contributed towards poverty reduction among agricultural household.All of the poverty measures show that the inclusion of non-farm income into the agricultural household income reduce the level, depth and severity of poverty. But on the other hand, non farm income increased income inequality among agricultural household in Kedah.As expected agricultural income is the main source of income for rural people in the study area.The policy implication of this study is to encourage non-farm income activities among agricultural households as this would raise their income and hence, reduce poverty among them. However, it should be focused on value-added activities, especially on the lower income group Elsevier Ltd 2012 Article PeerReviewed application/pdf en cc_by https://repo.uum.edu.my/id/eprint/16676/1/1-s2.0.pdf Che Mat, Siti Hadijah and Abdul Jalil, Ahmad Zafarullah and Harun, Mukaramah (2012) Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah? Procedia Economics and Finance, 1. pp. 269-275. ISSN 2212-5671 http://doi.org/10.1016/S2212-5671(12)00031-7 doi:10.1016/S2212-5671(12)00031-7 doi:10.1016/S2212-5671(12)00031-7
spellingShingle HC Economic History and Conditions
Che Mat, Siti Hadijah
Abdul Jalil, Ahmad Zafarullah
Harun, Mukaramah
Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah?
title Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah?
title_full Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah?
title_fullStr Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah?
title_full_unstemmed Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah?
title_short Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah?
title_sort does non farm income improve the poverty and income inequality among agricultural household in rural kedah
topic HC Economic History and Conditions
url https://repo.uum.edu.my/id/eprint/16676/1/1-s2.0.pdf
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AT harunmukaramah doesnonfarmincomeimprovethepovertyandincomeinequalityamongagriculturalhouseholdinruralkedah