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Fair and inclusive markets: Why dynamism matters

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  • Reda Cherif
  • Fuad Hasanov
  • Philippe Aghion

Abstract

We argue that the economies that achieved inclusive growth, or high sustained and broad‐based growth while keeping a lid on the increase in market income inequality, are characterised by dynamism—a drive towards the acquisition of new capabilities in sophisticated products and processes. What a country produces and how much it competes domestically and internationally are important for achieving fair and inclusive markets. We show empirical evidence that dynamism, as measured by export sophistication, reduces market income inequality and poverty while increasing a broad concept of welfare. We explore policy options to steer industrial and market structures towards raising dynamism, thus providing growth opportunities for both workers and firms.

Suggested Citation

  • Reda Cherif & Fuad Hasanov & Philippe Aghion, 2023. "Fair and inclusive markets: Why dynamism matters," Global Policy, London School of Economics and Political Science, vol. 14(5), pages 686-701, November.
  • Handle: RePEc:bla:glopol:v:14:y:2023:i:5:p:686-701
    DOI: 10.1111/1758-5899.13250
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    2. Theodora Sotiropoulou & Stefanos Giakoumatos & Antonios Georgopoulos, 2023. "Financial development, economic growth, and income inequality: a Toda-Yamamoto panel causality test," Economics and Business Letters, Oviedo University Press, vol. 12(2), pages 172-185.
    3. Meer Jan & Amdadullah Baloch & Abdullah Abdulaziz Bawazir & Abdul Qayyum & Mahfoudh Hussein Mgammal, 2024. "Innovation and Path to Inclusiveness in Developing Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 330-337, September.
    4. Estache, Antonio & Foucart, Renaud, 2021. "On the political economy of industrial, labor and social reforms as complements," European Economic Review, Elsevier, vol. 137(C).
    5. Kanamura, Takashi, 2025. "Sustainability arbitrage pricing of ESG derivatives," International Review of Financial Analysis, Elsevier, vol. 104(PA).

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