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Does social capital reduce poverty? A case study of rural households in Terengganu, Malaysia

Abdul Hakim, Roslan and Abdul Razak, Nor Azam and Ismail, Russayani (2010) Does social capital reduce poverty? A case study of rural households in Terengganu, Malaysia. European Journal of Social Sciences, 14 (4). pp. 556-566. ISSN 1450-2267

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Abstract

In this study, the relationship between social capital and poverty is examined. The data employed are primary data, collected from a sample of 2500 households in rural Terengganu, Malaysia. Information on household demographic characteristics, income, human capital, physical assets (capital) and social capital is collected. Social capital covers six dimensions: i) groups and networks, ii) trust and solidarity, iii) collective action and cooperation, iv) information and communication, v) social cohesion and inclusion, and vi) empowerment and political action.Social capital index for each household, in the scale of 1 to 10, is calculated by applying a linear transformation technique. The analysis in this study is based on logit model estimation. Interestingly, the results show that social capital plays an important role in poverty alleviation, consistent with the evidence in the recent literature. Other factors that are found to be important include human capital, physical capital, the age and gender of the head of the household, as well as the size of the household.

Item Type: Article
Uncontrolled Keywords: Social capital; poverty; logit model; Malaysia
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: School of Economics, Finance & Banking
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 03 Sep 2020 00:14
Last Modified: 01 Nov 2020 07:24
URI: https://repo.uum.edu.my/id/eprint/27414

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