IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2021i1p100-d709012.html
   My bibliography  Save this article

Determinants of Inclusive Growth in the Context of the Theory of Sustainable Finance in the European Union Countries

Author

Listed:
  • Joanna Stawska

    (Department of Central Banking and Financial Intermediation, Faculty of Economics and Sociology, University of Lodz, 90-214 Lodz, Poland)

  • Małgorzata Jabłońska

    (Department of SME Finance and Accounting, Faculty of Economics and Sociology, University of Lodz, 90-214 Lodz, Poland)

Abstract

The aim of the article is to identify a degree of inclusive growth and to examine the influence of determinants of inclusive growth in the European Union (EU-27) countries, with particular emphasis on factors related to the influence of governments and central banks. The study took advantage of the weight correlation method, which was used to build an inclusive growth measure for the EU-27 for the years 2000, 2008, and 2020. For the construction of the inclusive growth rate, 42 factors were selected that affect inclusive growth in the economic, financial, and non-wage area. These determinants are found in the area of the influence of economic authorities, and mainly in the area of authorities responsible for conducting monetary and fiscal policy and general governance. On the basis of the built-up indicator of inclusive growth, it was noticed that among the 27 EU countries in the studied three years, only four countries distinguished themselves with the highest inclusive growth over the last 21 years, these are: Denmark, Luxembourg, Sweden, and Finland. On the other hand, invariably, three countries recorded the lowest inclusive growth, i.e., Bulgaria, Croatia, and Romania. The added value of the structure of the inclusive growth indicator was a possibility to observe which of the three areas: economic, financial, or non-wage, had a significant impact on the position of a given country in the compiled inclusive growth ranking.

Suggested Citation

  • Joanna Stawska & Małgorzata Jabłońska, 2021. "Determinants of Inclusive Growth in the Context of the Theory of Sustainable Finance in the European Union Countries," Sustainability, MDPI, vol. 14(1), pages 1-40, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2021:i:1:p:100-:d:709012
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/1/100/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/1/100/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Commission on Growth and Development, 2008. "The Growth Report : Strategies for Sustained Growth and Inclusive Development," World Bank Publications - Books, The World Bank Group, number 6507, December.
    2. World Economic Forum, 2017. "The Inclusive Growth and Development Report 2017," Working Papers id:11638, eSocialSciences.
    3. Mihaela Onofrei & Anca Gavriluţă (Vatamanu) & Ionel Bostan & Florin Oprea & Gigel Paraschiv & Cristina Mihaela Lazăr, 2020. "The Implication of Fiscal Principles and Rules on Promoting Sustainable Public Finances in the EU Countries," Sustainability, MDPI, vol. 12(7), pages 1-21, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wasiu Adamson, Temitope & Adebayo Ajisafe, Rufus & Omobolanle Yussuff, Rukayat, 2022. "Inclusive Growth In Sub-Saharan Africa: Does Sectoral Foreign Aid Matter?," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 9(2), pages 97-128, June.
    2. Emeka NKORO, Aham & Kelvin UKO, 2023. "Foreign Direct Investment And Inclusive Growth: The Role Of The Financial Sector Development In Nigeria, 1981-2020," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 23(1), pages 77-100.
    3. Emeka Nkoro & Aham Kelvin Uko, 2022. "Foreign Direct Investment and Inclusive Growth: The Role of the Financial Sector Development," International Journal of Economic Sciences, European Research Center, vol. 11(2), pages 144-162, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elena Rytova & Svetlana Gutman & Cristina Sousa, 2021. "Regional Inclusive Development: An Assessment of Russian Regions," Sustainability, MDPI, vol. 13(11), pages 1-20, May.
    2. Lauren A. Johnston, 2019. "The Belt and Road Initiative: What is in it for China?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 6(1), pages 40-58, January.
    3. Antonio Ciccone & Marek Jarociński, 2010. "Determinants of Economic Growth: Will Data Tell?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 222-246, October.
    4. Isaac K. Ofori, 2021. "Towards Building Shared Prosperity in Sub-Saharan Africa: How Does the Effect of Economic Integration Compare to Social Equity Policies?," Working Papers of the African Governance and Development Institute. 21/045, African Governance and Development Institute..
    5. Sai Ding & John Knight, 2011. "Why has China Grown So Fast? The Role of Physical and Human Capital Formation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73(2), pages 141-174, April.
    6. Christoph Dörffel & Sebastian Schuhmann, 2020. "What is Inclusive Development? Introducing the Multidimensional Inclusiveness Index," Jena Economics Research Papers 2020-015, Friedrich-Schiller-University Jena.
    7. Simplice Asongu & Ndemaze Asongu, 2018. "The comparative exploration of mobile money services in inclusive development," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(1), pages 124-139, January.
    8. Kouadio, Hugues Kouassi & Gakpa, Lewis-Landry, 2022. "Do economic growth and institutional quality reduce poverty and inequality in West Africa?," Journal of Policy Modeling, Elsevier, vol. 44(1), pages 41-63.
    9. Simplice Asongu & Jacinta Nwachukwu, 2016. "Welfare Spending and Quality of Growth in Developing Countries: A Note on Evidence from Hopefuls, Contenders and Best Performers," Working Papers of the African Governance and Development Institute. 16/028, African Governance and Development Institute..
    10. Williams, Joycelyn, 2012. "Beyond Macroeconomic Stability: The Role of Selective Interventions in Guyana’s Growth," MPRA Paper 42755, University Library of Munich, Germany.
    11. Oksana Prodius, 2020. "The Inclusive Development Concept As A Modern Paradigm For Intensification Of Implementation Of Innovations," Three Seas Economic Journal, Publishing house "Baltija Publishing", vol. 1(1).
    12. Quibria, M.G., 2020. "Poverty and Policy in the Developing World: Before and After the Pandemic," MPRA Paper 104240, University Library of Munich, Germany, revised 15 Oct 2020.
    13. Choi, Ki-Hong & Oh, Wankeun, 2014. "Extended Divisia index decomposition of changes in energy intensity: A case of Korean manufacturing industry," Energy Policy, Elsevier, vol. 65(C), pages 275-283.
    14. International Monetary Fund, 2012. "Philippines: Selected Issues," IMF Staff Country Reports 2012/050, International Monetary Fund.
    15. George, Justine, 2016. "An Assessment of Inclusiveness in the Urban Agglomeration of Kochi City: The need for a change in approach of urban planning," MPRA Paper 90149, University Library of Munich, Germany.
    16. Montek S. Ahluwalia, 2015. "Role of economists in policy-making," WIDER Working Paper Series wp-2015-144, World Institute for Development Economic Research (UNU-WIDER).
    17. Gupta, Poonam & Tyagi, Abhinav, 2022. "Slowdown of the Indian Economy during 2019-20: An Enigma or an Anomaly," MPRA Paper 112704, University Library of Munich, Germany.
    18. Lant Pritchett & Erik Werker, 2012. "Developing the guts of a GUT (Grand Unified Theory): elite commitment and inclusive growth," Global Development Institute Working Paper Series esid-016-12, GDI, The University of Manchester.
    19. Montfort Mlachila & René Tapsoba & Sampawende J. A. Tapsoba, 2017. "A Quality of Growth Index for Developing Countries: A Proposal," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 675-710, November.
    20. Aiyar, Shekhar & Duval, Romain & Puy, Damien & Wu, Yiqun & Zhang, Longmei, 2018. "Growth slowdowns and the middle-income trap," Japan and the World Economy, Elsevier, vol. 48(C), pages 22-37.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2021:i:1:p:100-:d:709012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.