The Role of Assets in the Enhancement of Households’ Income: A Study of Poverty Alleviation among Rural Communities of Kelantan and Terengganu

Abstract

This paper aims to examine the role of assets and entitlements on the enhancement of farmers' income. Using a structured socio-economic questionnaire, 302 randomly selected farmers in both Kelantan and Terengganu states were tested. To answer the study's objectives, one way ANOVA test was carried out and tested. The results indicated that access to land, fertilizers, tractors, and health facilities, quality of housing, market, and livestock have significant positive impact on farmers' wellbeing. Access to irrigation and having savings (at banks and/or homes) were found to have significant negative impact on farmers' monthly income. Education and association memberships are not essential factors that might contribute to the enhancement of farmers' livelihood. Investing in productive assets was found to be more effective rather than safekeeping the money in a bank or at home. However, households and farmers deal with their own assets and entitlement differently. As a result, assets are found to decrease the income of farmers partially due to the farmers' decision-making strategies which seems to be poor and inadequate. Therefore, incorporating psychological perspective such as farmers' behaviours and perceptions are utmost important in order to better understand the complex mechanisms underlying the farmers who are falling in poverty trap.

Determinan Faktor Sosial Dan Ekonomi Terhadap Penurunan Kemiskinan Di Kabupaten Dan Kota Di Provinsi Jawa Barat

“…Jadi setiap peningkatan GDPcap 1 milyar akan menurunkan tingkat kemiskinan sebesar 4.65E-08%. Peningkatan GDPcap menjadi kunci pengentasan kemiskinan (Abdelhak et al, 2012). Penelitian dari Leow & Tan (2019), bahwa pertumbuhan ekonomi yang diproksikan dengan PDRB perkapita berhubungan negatif terhadap tingkat kemiskinan.…”

“…Kenaikan GEDUC sebesar 1% akan menurunkan tingkat kemiskinan sebesar -0.024287% (ceteris paribus). Hasil penelitian sesuai dengan Abdelhak et al, (2012) bahwa pengeluaran pendidikan dapat menurunkan kemiskinan. Peranan pendidikan secara jangka panjang untuk mengentaskan kemiskinan melalui peningkatan kualitas SDM (Abdelhak et al, 2012).…”

“…Hasil penelitian sesuai dengan Abdelhak et al, (2012) bahwa pengeluaran pendidikan dapat menurunkan kemiskinan. Peranan pendidikan secara jangka panjang untuk mengentaskan kemiskinan melalui peningkatan kualitas SDM (Abdelhak et al, 2012). Penduduk miskin terkadang terkendala dengan kebutuhan pendidikan seperti melanjutkan tingkat pendidikan secara berjenjang.…”

Factors Affecting the Socio-Economic Status of Households in Southern Punjab

“…A rise in earners in household by one member will result an increase in the economic development or per capita earnings by the household by 9.3 percent [ Vatta and Sidhu (2007) and Jehovaness (2010)]. If value of physical assets rises by one percent, it leads to rise the income per capita of the household by 2.1 percent [Abdelhak et al, (2012), Vedia-Jerez and Chasco (2016)]. Source: Survey data, 2019 Table 5 presents the OLS regression results of econometric analysis of factors affecting economic development in Multan division.…”