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Inclusive Growth; Measurement and Determinants

Author

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  • Rahul Anand
  • Saurabh Mishra
  • Shanaka J Peiris

Abstract

We estimate a unified measure of inclusive growth for emerging markets by integrating their economic growth performance and income distribution outcomes, using data over three decades. Country distributions are calibrated by combining PPP GDP per capita and income distribution from survey data. We apply the microeconomic concept of a social mobility function at the macroeconomic level to measure inclusive growth that is closer to the absolute definition of pro-poor growth. This dynamic measure permits us to focus on inequality as well as distinguish between countries where per capita income growth was the same for the top and the bottom of the income pyramid, by accounting for the pace of growth. Our results indicate that macroeconomic stability, human capital, and structural changes are foundations for achieving inclusive growth. The role of globalization could also be positive with foreign direct investment and trade openess fostering greater inclusiveness, while financial deepening and technological change have no discernible effect.

Suggested Citation

  • Rahul Anand & Saurabh Mishra & Shanaka J Peiris, 2013. "Inclusive Growth; Measurement and Determinants," IMF Working Papers 13/135, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:13/135
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    References listed on IDEAS

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    5. Aizenman, Joshua & Lee, Minsoo & Park, Donghyun, 2012. "The Relationship between Structural Change and Inequality: A Conceptual Overview with Special Reference to Developing Asia," ADBI Working Papers 396, Asian Development Bank Institute.
    6. Nicola Spatafora & Rahul Anand & Saurabh Mishra, 2012. "Structural Transformation and the sophistication of Production," IMF Working Papers 12/59, International Monetary Fund.
    7. Mishra, Saurabh & Lundstrom, Susanna & Anand, Rahul, 2011. "Service export sophistication and economic growth," Policy Research Working Paper Series 5606, The World Bank.
    8. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, pages 541-563.
    9. Kraay, Aart, 2004. "When is growth pro-poor? Cross-country evidence," Policy Research Working Paper Series 3225, The World Bank.
    10. Barro, Robert J, 2000. "Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    11. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, Elsevier.
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    Cited by:

    1. Youssouf KIENDREBEOGO & Abdoulaye TALL & Kossi ASSIMAIDOU, 2013. "Social Protection for Poverty Reduction in Times of Crisis," Working Papers 201311, CERDI.
    2. Simplice Asongu & Rangan Gupta, 2016. "Trust and quality of growth: a note," Economics Bulletin, AccessEcon, vol. 36(3), pages 1854-1867.
    3. Jean-Louis Combes & Rasmané Ouedraogo, 2016. "How Does Inclusive Growth Boost Tax Revenue Mobilization?," Working Papers halshs-01281914, HAL.
    4. Winters, L. Alan, 2014. "Globalization, Infrastructure, and Inclusive Growth," ADBI Working Papers 464, Asian Development Bank Institute.
    5. Temel Taskin, 2014. "GDP Growth in Turkey : Inclusive or Not?," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 14(2), pages 31-64.
    6. Simplice Asongu & Jacinta C. Nwachukwu, 2015. "Finance and Inclusive Human Development: Evidence from Africa," Working Papers 15/061, African Governance and Development Institute..
    7. Rahul Anand & Volodymyr Tulin & Naresh Kumar, 2014. "India; Defining and Explaining Inclusive Growth and Poverty Reduction," IMF Working Papers 14/63, International Monetary Fund.
    8. Alina Ligia Dumitrescu, 2016. "The Social Dimension of “Europe 2020” Strategy: the Inclusive Growth," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 8(1), pages 68-72, March.
    9. Simplice Asongu & Oasis Kodila-Tedika, 2015. "On the Empirics of Institutions and Quality of Growth: Evidence for Developing Countries," Working Papers 15/041, African Governance and Development Institute..
    10. 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 16/028, African Governance and Development Institute..
    11. Simplice Asongu, 2015. "Welfare Spending and Quality of Growth in Developing Countries: Evidence from Hopefuls, Contenders and Best Performers," Working Papers 15/022, African Governance and Development Institute..
    12. Kang, Jong Woo, 2015. "Interrelation between Growth and Inequality," ADB Economics Working Paper Series 447, Asian Development Bank.
    13. Chie Aoyagi & Giovanni Ganelli & Kentaro Murayama, 2016. "How Inclusive is Abenomics?," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 1-28, February.
    14. Aoyagi, Chie & Ganelli, Giovanni, 2015. "Asia's quest for inclusive growth revisited," Journal of Asian Economics, Elsevier, vol. 40(C), pages 29-46.
    15. 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.
    16. Simplice Asongu & Jacinta C. Nwachukwu, 2017. "Comparative human development thresholds for absolute and relative pro-poor mobile banking in developing countries," Working Papers 17/007, African Governance and Development Institute..
    17. Asongu, Simplice & De Moor, Lieven, 2015. "Recent advances in finance for inclusive development: a survey," MPRA Paper 67299, University Library of Munich, Germany.
    18. Asongu, Simplice A. & Odhiambo, Nicholas M., 2017. "Mobile banking usage, quality of growth, inequality and poverty in developing countries," Working Papers 23396, University of South Africa, Department of Economics.
    19. Rahul Anand & Saurabh Mishra & Shanaka J. Peiris, 2013. "Inclusive Growth Revisited," World Bank Other Operational Studies 22618, The World Bank.
    20. Simplice Asongu & Vanessa Tchamyou, 2015. "Inequality, Finance and Pro-Poor Investment in Africa," Working Papers 15/052, African Governance and Development Institute..
    21. Asongu, Simplice & Asongu, Ndemaze, 2017. "Comparative Determinants of Quality of Growth in Developing Countries," MPRA Paper 80650, University Library of Munich, Germany.
    22. repec:eee:jpolmo:v:39:y:2017:i:6:p:1163-1183 is not listed on IDEAS
    23. Simplice Asongu & Jacinta C. Nwachukwu, 2017. "Quality of Growth Empirics: Comparative Gaps, Benchmarking and Policy Syndromes," Working Papers 17/034, African Governance and Development Institute..
    24. AfDB AfDB, 2016. "North Africa - Working paper - The Role of Nascent Entrepreneurship in Driving Inclusive Economic Growth in North Africa," Working Paper Series 2336, African Development Bank.

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