Regional Economic Corridors and Household Income

A Pathway to Equitable Growth

Bibliographic Data

ID13083033
AuthorsKanagi Rajandran (University of Malaya), V G R Chandran Govindaraju (0000-0002-4219-9252, University of Malaya, corresponding author), Angathevar Baskaran (0000-0002-5723-8795, University of Malaya)
Year2025
Publication date2025-10-14
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueMillennial Asia (JOURNAL)
Journal identifiersISSN: 2321-7081 • E-ISSN: 0976-3996
PublisherSAGE Publishing (PUBLISHER • US)
DOI10.1177/09763996251378222
OpenAlexW4415151070
LanguageEN
References cited44

This study investigates the impact of regional economic corridors (RECs) on household income in Malaysia using micro-level cross-sectional data from 2007 to 2019. The results show that although corridor strategies contribute to income growth, their effects remain modest. Household incomes in corridor states are, on average, lower than in non-corridor states, though this gap has narrowed over time, suggesting that corridor effects require longer periods to materialize. More importantly, spatial divides—between developed and less-developed states and between urban and rural regions—explain income variation more effectively than corridor policies. Education, skills and gender further exert stronger influence on household income than corridor interventions. Our household-level income assessment highlights the importance of embedding skill development, educational attainment and gender equality into REC policies, while prioritizing the reduction of rural–urban disparities to enhance their effectiveness in raising household income

Economic inequality · Educational attainment · Household income · Inequality · Low income · Rural area · Spatial mismatch · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Regional Economics and Spatial Analysis

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