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Jurnal Ekonomi Malaysia

52 (1) 2018 283 – 295

Determinants of Muslim Household Basic Needs Consumption Expenditures
Penentu Perbelanjaan Penggunaan Keperluan Asas Isi Rumah Muslim

School of Social and Economic Development
University Malaysia Terengganu
21300 Kuala Terengganu Terengganu
MALAYSIA

lindarashid@umt.edu.my

School of Social and Economic Development
University Malaysia Terengganu
21300 Kuala Terengganu Terengganu
MALAYSIA

aslina3833@gmail.com

School of Social and Economic Development
University Malaysia Terengganu
21300 Kuala Terengganu Terengganu
MALAYSIA

zura@umt.edu.my

School of Social and Economic Development
University Malaysia Terengganu
21300 Kuala Terengganu Terengganu
MALAYSIA

roseliza@umt.edu.my

School of Economics
Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi Selangor
MALAYSIA

rahis@ukm.edu.my

School of Economics
Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi Selangor
MALAYSIA

nep@ukm.edu.my

School of Economics
Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi Selangor
MALAYSIA

shahida@ukm.edu.my

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); muslim households; Seemingly Unrelated Regression Estimation (SURE)
http://dx.doi.org/10.17576/JEM-2018-5201-23
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Abdul Rashid, , Nasir, , Anang, , Mat Alipiah, , Ismail, , Ahmad, , & Shahimi, (2018). Determinants of Muslim Household Basic Needs Consumption Expenditures. Jurnal Ekonomi Malaysia, 52(1), 283–295. http://dx.doi.org/10.17576/JEM-2018-5201-23

@article{abdrashid2018determinants,
  title={Determinants of Muslim Household Basic Needs Consumption Expenditures},
  author={Abdul Rashid, Noorhaslinda Kulub and Nasir, Aslina and Anang, Zuraini and Mat Alipiah, Roseliza and Ismail, Rahmah and Ahmad, Sanep and Shahimi, Shahida},
  journal={Jurnal Ekonomi Malaysia},
  volume={52},
  number={1},
  pages={283—295},
 

year={2018},
}

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