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Is it an institution, digital or social inclusion that matters for inclusive growth? A panel data analysis

Author

Listed:
  • Aribah Aslam

    (Nur International University)

  • Amjad Naveed

    (Aarhus University)

  • Ghulam Shabbir

    (Forman Christian College (A Chartered University))

Abstract

This study empirically examines the impact of institutional quality, social inclusion and digital inclusion on inclusive growth across different economies characterized by different income groups. Particularly, the study examines the impact of institutions on inclusive growth by using the panel data for 83 countries over the period 2010–2017. For empirical specification, we used two-steps system-GMM estimation technique to tackle endogeneity and min–max normalized indexing technique to construct the indices for inclusive growth, social inclusion, digital inclusion and institutional quality. The results of this study show that there is a direct link between institutional quality and inclusive growth for a higher-income group of countries but not in the rest of the income groups. Contribution of social and digital inclusivity is significant in all three income groups, except for social inclusion in middle-income countries. From the policy point of view, these findings suggest that establishing and strengthening the institutional structure in low- and middle-income countries can contribute towards better and higher inclusive growth.

Suggested Citation

  • Aribah Aslam & Amjad Naveed & Ghulam Shabbir, 2021. "Is it an institution, digital or social inclusion that matters for inclusive growth? A panel data analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(1), pages 333-355, February.
  • Handle: RePEc:spr:qualqt:v:55:y:2021:i:1:d:10.1007_s11135-020-01008-3
    DOI: 10.1007/s11135-020-01008-3
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    More about this item

    Keywords

    Social inclusion; Digital inclusion; Inclusive growth; Institutions; Panel data; System GMM;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • F01 - International Economics - - General - - - Global Outlook
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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