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Cross-country Evidence on the Determinants of Inclusive Growth Episodes

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  • João Tovar Jalles
  • Luiz de Mello

Abstract

Widening income disparities and slow productivity growth in most advanced, and several emerging-market, economies have rekindled interest in the empirical analysis of the determinants of inclusive growth, defined in this paper as episodes of increases in GDP per capita without a concomitant deterioration in the distribution of household disposable income.The empirical analysis is based on a chronology of inclusive growth episodes between 1980 and 2013 for a sample of 78 countries.Logit and multinomial probit estimations show that human capital accumulation, the redistributive potential of tax-benefit systems, increases in multifactor productivity and labor force participation, as well as trade openness and a range of institutional factors, including political system durability and electoral regimes, are important determinants of the probability of occurrence of inclusive growth. This empirical evidence contributes to the policy debate about how countries can deal with efficiency-equity trade-offs.

Suggested Citation

  • João Tovar Jalles & Luiz de Mello, 2019. "Cross-country Evidence on the Determinants of Inclusive Growth Episodes," Working Papers REM 2019/81, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
  • Handle: RePEc:ise:remwps:wp0812019
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    References listed on IDEAS

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    Cited by:

    1. Lingming Chen & Wenzhong Ye & Congjia Huo & Kieran James, 2020. "Environmental Regulations, the Industrial Structure, and High-Quality Regional Economic Development: Evidence from China," Land, MDPI, Open Access Journal, vol. 9(12), pages 1-22, December.
    2. Sanjeev Gupta & João Tovar Jalles, 2020. "Tax Revenue Reforms and Income Distribution in Developing Countries," Working Papers REM 2020/0137, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    3. Marta Rodriguez-Vives, 2019. "The quality of public finances: where do we stand?," Economics and Business Letters, Oviedo University Press, vol. 8(2), pages 97-105.

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    More about this item

    Keywords

    growth; income distribution; multinomial probit; relogit;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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