Determinants of Muslim Household Basic Needs Consumption Expenditures

Noorhaslinda Kulub Abdul Rashid (), Aslina Nasir (), Zuraini Anang (), Roseliza Mat Alipiah (), Rahmah Ismail (), Sanep Ahmad () and Shahida Shahimi ()
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Noorhaslinda Kulub Abdul Rashid: School of Social and Economic Development University Malaysia Terengganu 21300 Kuala Terengganu Terengganu MALAYSIA
Aslina Nasir: School of Social and Economic Development University Malaysia Terengganu 21300 Kuala Terengganu Terengganu MALAYSIA
Zuraini Anang: School of Social and Economic Development University Malaysia Terengganu 21300 Kuala Terengganu Terengganu MALAYSIA
Roseliza Mat Alipiah: School of Social and Economic Development University Malaysia Terengganu 21300 Kuala Terengganu Terengganu MALAYSIA
Rahmah Ismail: School of Economics Faculty of Economics and Management Universiti Kebangsaan Malaysia 43600 UKM Bangi Selangor MALAYSIA
Sanep Ahmad: School of Economics Faculty of Economics and Management Universiti Kebangsaan Malaysia 43600 UKM Bangi Selangor MALAYSIA
Shahida Shahimi: School of Economics Faculty of Economics and Management Universiti Kebangsaan Malaysia 43600 UKM Bangi Selangor MALAYSIA

Jurnal Ekonomi Malaysia, 2018, vol. 52, issue 1, 283-295

Abstract: This paper focuses on current household expenditure in an environment characterised by a high cost of living and modernisation. In order to cope with the current economic situation, individual vary in their consumption levels and lifestyles. In this study, basic needs expenditure refers to four main groups of household expenditure, namely food, housing, transportation and communication given that they make up a significant part of total household expenditure. Furthermore, the different budget constraints that vary with income and location, the different expenditure patterns reflect how people are surviving in the current economic climate. This paper identifies the factors contributing to basic needs consumption comprising food, housing, transportation and communication. The econometric analysis using Seemingly Unrelated Regression Estimation (SURE) shows that these expenditures are largely determined by the total monthly spouse income (Inc) and total borrowing (Bor) for all consumption expenditures. The results with interaction term also revealed no difference in the basic needs expenditure of urban and rural households in Selangor and Kelantan. Based on the findings, households should be educated on consumerism and financial management for effective financial planning.

Keywords: Basic needs consumption expenditure; Household Consumption Expenditure (HCE); Seemingly Unrelated Regression Estimation (SURE); muslim households (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:52:y:2018:i:1:p:283-295

DOI: 10.17576/JEM-2018-5201-23

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