Universal Journal of Accounting and Finance Vol. 9(4), pp. 790 - 795
DOI: 10.13189/ujaf.2021.090425
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Development of Poverty Index for Districts in Kedah by Using CRITIC and Simple Additive Weighting Methods


Nuril Asyikin Mohamad *, Nor Hasliza Mat Desa , Maznah Mat Kasim
School of Quantitative Sciences, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah, Malaysia

ABSTRACT

Poverty is a major problem either in this country or globally as it is like a vicious cycle that is endless. In Peninsular Malaysia, there are four states: Kelantan, Terengganu, Perlis and Kedah that still recorded higher incidences of poverty than the national average. The differences in development among regions, states and rural-urban areas maintain a wide gap even though the economic growth was reported by all the states. This might be attributed to some key factors that could have effects on poverty in a smaller region. It is argued that the factors prescribing the index have different levels of importance or weights towards the poverty incidence. Hence, this paper aims to determine the weightage of poverty indicators that affect the poverty rate in smaller area in Kedah and to develop the corresponding poverty index in Kedah. This paper used the CRiteria Importance Through Intercriteria Correlation (CRITIC) weighting method to determine the importance of five indicators. It is revealed that the most important indicator is the size of household followed by income, expenditure, head of household, and residence. Moreover, the poverty index was also developed for 12 districts in Kedah by using Simple Additive Weighting (SAW) method. Results showed that the district with highest poverty index value is Kuala Muda while the lowest is Bandar Baharu district. This paper contributes to changes of poverty information so that the government and Non-Governmental Organizations (NGO) can design appropriate policies to reduce higher poverty rate in Kedah and plan on providing more aids for the targeted group especially in districts with higher poverty index values. Consequently, it is hoped that these governmental and non-governmental initiatives could help poor people to motivate themselves to have a better education so that they can enhance their economic productivity for the betterment of their lives.

KEYWORDS
Poverty, Poverty Index, Objective Weight, CRITIC Weighting Method, SAW

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Nuril Asyikin Mohamad , Nor Hasliza Mat Desa , Maznah Mat Kasim , "Development of Poverty Index for Districts in Kedah by Using CRITIC and Simple Additive Weighting Methods," Universal Journal of Accounting and Finance, Vol. 9, No. 4, pp. 790 - 795, 2021. DOI: 10.13189/ujaf.2021.090425.

(b). APA Format:
Nuril Asyikin Mohamad , Nor Hasliza Mat Desa , Maznah Mat Kasim (2021). Development of Poverty Index for Districts in Kedah by Using CRITIC and Simple Additive Weighting Methods. Universal Journal of Accounting and Finance, 9(4), 790 - 795. DOI: 10.13189/ujaf.2021.090425.