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Measuring Inclusive Growth

Author

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  • Ifzal Ali
  • Hyun Hwa Son

Abstract

This study proposes an approach to measuring inclusive growth. It draws from the idea of a social opportunity function akin to a social welfare function. In this context, growth is defined as inclusive if it increases the social opportunity function, which depends on two factors: (i) average opportunities available to the population, and (ii) how opportunities are shared among the population. In part, the inclusiveness of growth can be captured by means of an opportunity curve, which has a one-to-one relationship with the social opportunity function. To complement the shortcoming of the opportunity curve particularly partial ranking, the study also develops the opportunity index to provide a complete ranking. These tools are applied to the Philippines to analyze the access to and equity of opportunities in education and health. More importantly, the empirical application illustrates how these tools can be useful in the dynamic analysis of inclusive growth, as they evaluate changes in opportunities over time.

Suggested Citation

  • Ifzal Ali & Hyun Hwa Son, 2007. "Measuring Inclusive Growth," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 11-31.
    • Handle: RePEc:wsi:adrxxx:v:24:y:2007:i:01:n:s0116110507000024
    DOI: 10.1142/S0116110507000024
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    Cited by:

    1. Haitao Wu & Shiyue Luo & Suixin Li & Yan Xue & Yu Hao, 2024. "Fostering Urban Inclusive Green Growth: Does Corporate Social Responsibility (CSR) Matter?," Journal of Business Ethics, Springer, vol. 189(4), pages 677-698, February.
    2. Suleiman O. Mamman, 2023. "Response of Inclusive Growth to Development Aid in Africa and the Role of ICT Diffusion," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(4), pages 770-788.
    3. Amponsah, Mary & Agbola, Frank W. & Mahmood, Amir, 2023. "The relationship between poverty, income inequality and inclusive growth in Sub-Saharan Africa," Economic Modelling, Elsevier, vol. 126(C).
    4. Zunia Saif Tirmazee & Maryiam Haroon, 2015. "Growth in Pakistan: Inclusive or Not?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 335-350.
    5. Fox, Stephen, 2016. "Open prosperity: How latent realities arising from virtual-social-physical convergence (VSP) increase opportunities for global prosperity," Technology in Society, Elsevier, vol. 44(C), pages 92-103.
    6. Rahul Anand & Saurabh Mishra & Shanaka J. Peiris, 2013. "Inclusive Growth Revisited," World Bank Publications - Reports 22618, The World Bank Group.
    7. Suresh Chand Aggarwal, 2023. "How Inclusive Are Indian States: Evidence from Inclusive Development Index," Arthaniti: Journal of Economic Theory and Practice, , vol. 22(2), pages 151-180, December.
    8. Azra Khan & Gulzar Khan & Sadia Safdar & Sehar Munir & Zubaria Andleeb, 2016. "Measurement and Determinants of Inclusive Growth: A Case Study of Pakistan (1990-2012)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 455-466.
    9. Rahul Anand & Mr. Saurabh Mishra & Mr. Shanaka J Peiris, 2013. "Inclusive Growth: Measurement and Determinants," IMF Working Papers 2013/135, International Monetary Fund.
    10. Amrita Saha & Tommaso Ciarli, 2018. "Innovation, Structural Change, and Inclusion. A Cross Country PVAR Analysis," SPRU Working Paper Series 2018-01, SPRU - Science Policy Research Unit, University of Sussex Business School.

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