Expenditure analysis of the farm household economy in malay paddy growing villages

Malaysia has experienced tremendous economic transformation from agriculture based to a manufacturing based. Such development has spillover effect on the livelihood of rural household by engaging in the off-farm income activities. However, there have been income inequalities between both Coasts because most of the industrial parks are located in the West Coast. This study aims to examine patterns and determinants of household expenditure in four paddy farming areas. The results indicate that on average the household expenditure in east coast is lower compare to the West Coast. The expenditure function indicates that off-farm income and number of family members are the major determinants.