IDEAS home Printed from https://ideas.repec.org/a/gam/jsoctx/v8y2018i3p60-d160361.html
   My bibliography  Save this article

The Effect of Economic Vulnerability on the Participation in Development Programs and the Socio-Economic Well-Being of Low-Income Households

Author

Listed:
  • Wan Nurulasiah binti Wan Mustapa

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu 16100, Kelantan, Malaysia)

  • Abdullah Al Mamun

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu 16100, Kelantan, Malaysia)

  • Mohamed Dahlan Ibrahim

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu 16100, Kelantan, Malaysia)

Abstract

This study intends to examine the effect of economic vulnerability on participation in development initiatives, household income, micro-enterprise income and net worth of micro-enterprise asset among low-income households in the state of Kelantan, Malaysia. Adopting a cross-sectional design, this study collected data from randomly selected 450 micro-entrepreneurs who were being served by three major development organizations in Kelantan, Malaysia. The findings revealed that the level of economic vulnerability among the respondents had a significantly negative effect on the participation of development initiatives, household income, micro-enterprise income and the net worth of microenterprise asset among the low-income Kelantanese households. This study provided insights for a comprehensive policy formulation for rural development as it identified program participation issues and gaps faced by the targeted cohort, which if effectively addressed can lead to an increase in participation in development programs, together with household and micro-enterprise income and assets, among the low-income economically vulnerable households in Kelantan, Malaysia.

Suggested Citation

  • Wan Nurulasiah binti Wan Mustapa & Abdullah Al Mamun & Mohamed Dahlan Ibrahim, 2018. "The Effect of Economic Vulnerability on the Participation in Development Programs and the Socio-Economic Well-Being of Low-Income Households," Societies, MDPI, vol. 8(3), pages 1-16, July.
    • Handle: RePEc:gam:jsoctx:v:8:y:2018:i:3:p:60-:d:160361
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2075-4698/8/3/60/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2075-4698/8/3/60/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abdullah Al-Mamun & Mohammad Nurul Huda Mazumder & C.A. Malarvizhi, 2014. "Measuring the effect of Amanah Ikhtiar Malaysia’s microcredit programme on economic vulnerability among hardcore poor households," Progress in Development Studies, , vol. 14(1), pages 49-59, January.
    2. Hossain, Mahabub, 1988. "Credit for alleviation of rural poverty: the Grameen Bank in Bangladesh," Research reports 65, International Food Policy Research Institute (IFPRI).
    3. repec:pri:rpdevs:morduch_microfinance_poor is not listed on IDEAS
    4. M Twyeafur Rahman & Hafiz TA Khan, 2013. "The effectiveness of the microcredit programme in Bangladesh," Local Economy, London South Bank University, vol. 28(1), pages 85-98, February.
    5. Jinwoo Kwon & Andrea Hetling, 2017. "Moving In and Out of Welfare and Work: The Influence of Regional Socioeconomic Circumstances on Economic Disconnection Among Low-Income Single Mothers," Economic Development Quarterly, , vol. 31(4), pages 326-341, November.
    6. Sulochana Nair & S. Sagaran, 2015. "Poverty in Malaysia: Need for a Paradigm Shift," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 7(3), pages 95-123, October.
    7. Jonathan Morduch, 1998. "Does Microfinance Really Help the Poor? New Evidence from Flagship Programs in Bangladesh," Working Papers 198, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    8. Rasmus Heltberg & Ana Mar�a Oviedo & Faiyaz Talukdar, 2015. "What do Household Surveys Really Tell Us about Risk, Shocks, and Risk Management in the Developing World?," Journal of Development Studies, Taylor & Francis Journals, vol. 51(3), pages 209-225, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wan Nurulasiah binti Wan Mustapa & Abdullah Al Mamun & Mohamed Dahlan Ibrahim, 2018. "Economic Impact of Development Initiatives on Low-Income Households in Kelantan, Malaysia," Social Sciences, MDPI, vol. 7(7), pages 1-17, July.
    2. M. Jahangir Alam Chowdhury & Dipak Ghosh & Robert E. Wright, 2005. "The impact of micro-credit on poverty: evidence from Bangladesh," Progress in Development Studies, , vol. 5(4), pages 298-309, October.
    3. Mark Schreiner & Jacob Yaron, 2001. "Development Finance Institutions : Measuring Their Subsidy," World Bank Publications - Books, The World Bank Group, number 13983.
    4. Abdullah Al Mamun & Noorshella Binti Che Nawi & Mohd Asrul Hery Bin Ibrahim & Rajennd Muniady, 2018. "Effect of Economic Vulnerability on Competitive Advantages, Enterprise Performance and Sustainability," Social Sciences, MDPI, vol. 7(4), pages 1-11, April.
    5. Ghulam Hussain, A.K.M. & Nargis, Nigar & Ashiquzzaman, S.M. & Khalil, Fahad, 2019. "The employment impact of microcredit program participation in Bangladesh: Evidence from a longitudinal household survey," World Development Perspectives, Elsevier, vol. 13(C), pages 34-49.
    6. Coleman, Brett E., 1999. "The impact of group lending in Northeast Thailand," Journal of Development Economics, Elsevier, vol. 60(1), pages 105-141, October.
    7. Qayyum, Abdul & Ahmed, Munir, 2006. "Efficiency and Sustainability of Micro Finance Institutions in South Asia," MPRA Paper 85467, University Library of Munich, Germany, revised 2014.
    8. Khatun, Mst Asma & Islam, Mohammad Amirul & Majumder, Shankar, 2012. "Impact of micro-credit programmes on poverty alleviation in Bangladesh," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 35(1-2).
    9. Ali , Zulfiqar & Ahmed, Mansur, 2014. "Public Sector Microfinance and Rural Wellbeing:Evidence from BRDB," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 37(3), pages 27-49, September.
    10. Shahidur R. Khandker, 2005. "Microfinance and Poverty: Evidence Using Panel Data from Bangladesh," The World Bank Economic Review, World Bank, vol. 19(2), pages 263-286.
    11. Gunhild Berg, 2010. "Evaluating The Impacts Of Microsaving: The Case Of Sewa Bank In India," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(1), pages 75-96, March.
    12. Islam, Mohammad & Khatun, M.A. & Hossain, D. & Alom, J., 2012. "Micro-credit programmes of different NGOs/MFIs: A comparative study," Journal of the Bangladesh Agricultural University, Bangladesh Agricultural University Research System (BAURES), vol. 10.
    13. Abdullah Al Mamun & Mohd Asrul Hery Bin Ibrahim & Rajennd A/L Muniady & Mohammad Bin Ismail & Noorshella Binti Che Nawi & Noorul Azwin Binti Md Nasir, 2019. "Observations of Participation in Development Initiatives on Enterprise Income and Asset in Peninsular Malaysia," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 5(2), pages 198-213, July.
    14. Pitt, Mark M. & Khandker, Shahidur R., 2012. "Replicating replication : due diligence in Roodman and Morduch's replication of Pitt and Khandker (1998)," Policy Research Working Paper Series 6273, The World Bank.
    15. Khatun, M.A. & Islam, M.A. & Majumder, S., 2013. "Why some poor women in Bangladesh do not opt for micro-credit?," Journal of the Bangladesh Agricultural University, Bangladesh Agricultural University Research System (BAURES), vol. 11.
    16. Abu S. Shonchoy, 2015. "Seasonal Migration and Microcredit During Agricultural Lean Seasons: Evidence from Northwest Bangladesh," The Developing Economies, Institute of Developing Economies, vol. 53(1), pages 1-26, March.
    17. Wonhyung Lee & Nurul Widyaningrum, 2019. "Multidimensional access to financial services: Insights from Indonesia," Progress in Development Studies, , vol. 19(1), pages 21-35, January.
    18. Asad K. Ghalib & Issam Malki & Katsushi S. Imai, 2012. "Microfinance and its role in household poverty reduction: findings from Pakistan," Global Development Institute Working Paper Series 17312, GDI, The University of Manchester.
    19. Islam, Asadul & Nguyen, Chau & Smyth, Russell, 2015. "Does microfinance change informal lending in village economies? Evidence from Bangladesh," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 141-156.
    20. Amin, Sajeda & Rai, Ashok S. & Topa, Giorgio, 2003. "Does microcredit reach the poor and vulnerable? Evidence from northern Bangladesh," Journal of Development Economics, Elsevier, vol. 70(1), pages 59-82, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsoctx:v:8:y:2018:i:3:p:60-:d:160361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.