The Determinants of Rural-Urban Migration: Malaysia Case Study

Abstract

The purpose of this study is to determine the determinants of rural-urban migration in Malaysia. The annual data has obtained from 1988-2017 in Malaysia. There are various empirical approaches that have been employed in this study which are Augmented Dickey Fuller unit root test, Johensen-Jesulius Cointegration test, Vector Error Correction Model and Granger Causality test. The result shows there is absence of short run relationship between the population, household income, unemployment and poverty however the long run relationship between the variables are presence in rural while the urban has a short run and unidirectional causal relationship which is from the population to household income and the long run relationship between the variables also presence.