Inclusive Growth: Measurement and Determinants

Anand, Rahul; Mishra, Saurabh; Peiris, Shanaka; Cashin, Paul

doi:10.2139/ssrn.2282970

Cited by 51 publications

(98 citation statements)

References 26 publications

(5 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Indeed, the few studies we sighted, which are in line with our focus, are bereft of methodological rigour and policy relevance for SSA (see Anand et al, 2013;Bergh & Nilsson, 2010). First, trade openness has generally been the headline economic integration indicator in empirical works of this nature though this indicator is shallow as it does not capture the effects of foreign direct investment and capital flows fundamental of economic integration (see e.g., Anand et al, 2013). Second, inclusive growth proxies such as GDP per capita and human development index are shallow as they downplay the relevance of social equity in economic development.…”

mentioning

confidence: 78%

“…In doing so, we deviate from the proliferation of opinions shared on how policy-makers can build prosperous and all-inclusive societies post COVID-19 but without rigorous empirical backing. Indeed, the few studies we sighted, which are in line with our focus, are bereft of methodological rigour and policy relevance for SSA (see Anand et al, 2013;Bergh & Nilsson, 2010). First, trade openness has generally been the headline economic integration indicator in empirical works of this nature though this indicator is shallow as it does not capture the effects of foreign direct investment and capital flows fundamental of economic integration (see e.g., Anand et al, 2013).…”

mentioning

confidence: 89%

“…Although the pace and distribution of economic growth is undoubtedly crucial for inclusiveness, what matters for the latter goes beyond the former. For instance, Anand et al (2013) find that for emerging economies, whereas foreign direct investment and trade openness induce inclusive growth, inflation proved otherwise. Also, Paramasivan et al (2014) and Estache et al (2013) argue that although productivity and employment growth are crucial, interventions in human capital development, gender equality, and social safety nets are equally relevant for enhancing inclusive growth.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The dataset underpinning the analysis is macro and spans 1980-2019 for 43 SSA countries. 7 Data on the outcome variable, inclusive growth, is generated following Anand et al (2013). 8 Alternatively, we check the robustness of the results using the Palma ratio, sourced from the Global Consumption and Income Project (Lahoti et al, 2016), and GDP per capita growth (Ravallion & Chen, 2003).…”

Section: Datamentioning

confidence: 99%

“…The empirical strategy is thus the exploration of pathways through which social equity policies and economic integration affect inclusive growth. Following Anand et al (2013), Obeng et al (2021), Ofori et al (2021d) and Ofori and Asongu (2021b), we specify several models, with the first in each case being a baseline model before introducing economic integration and social equity policies in their various forms. Finally, we introduce the interaction terms for resource allocation and economic integration in the models.…”

Section: Theoretical and Estimation Strategymentioning

confidence: 99%

See 4 more Smart Citations

Towards shared prosperity in sub‐Saharan Africa: How does the effect of economic integration compare to social equity policies?

Ofori

Cantah

Afful

et al. 2022

African Development Review

View full text Add to dashboard Cite

This study extends the inclusive growth literature on sub-Saharan Africa (SSA) by addressing two conspicuous gaps. First, the study examines the effects of social equity policies and economic integration on inclusive growth. Second, the study investigates the joint effects of economic integration and resource allocation on inclusive growth. Using data on 43 SSA countries for the period 1980-2019, we provide robust evidence from the GMM estimator to show that relative to economic integration, social equity policies are rather remarkable in enhancing inclusive growth. The results further reveal that, although economic integration induces inclusive growth, the effect is pronounced in the presence of productive resource allocation. Policy recommendations are provided in line with the African Continental Free Trade Area (AfCFTA) agreement and the reversals of welfare gains due to the coronavirus pandemic.

show abstract

mentioning

confidence: 78%

mentioning

confidence: 89%

Section: Literature Reviewmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

Section: Theoretical and Estimation Strategymentioning

confidence: 99%

See 3 more Smart Citations

Towards shared prosperity in sub‐Saharan Africa: How does the effect of economic integration compare to social equity policies?

Ofori

Cantah

Afful

et al. 2022

African Development Review

View full text Add to dashboard Cite

show abstract

Aid grants versus technical cooperation grants: Implications for inclusive growth in Sub‐Saharan Africa, 1984–2018

Asongu

Ezeaku

2020

Journal of Public Affairs

View full text Add to dashboard Cite

This study investigates the effects of aid grants on inclusive growth in 37 Sub‐Saharan African countries for the period 1984–2018. Grant aid is decomposed into aid grants and technical cooperation grants. Two inclusive growth indicators are used, namely gross domestic product (GDP) per capita growth and unemployment rate. The dynamic panel autoregressive distributed lag (ARDL) approach, which is employed comprises three different estimators; the pooled mean group (PMG); mean group (MG) and dynamic fixed effect (DFE). The Hausman diagnostics were used to assess the efficiency and consistency of the estimators. Based on the PMG estimator, our findings show that aid grants and technical cooperation grants exert a positive influence on GDP per capita growth in the long run. However, while the observed influence of aid grants is found to be significant, technical cooperation grants display insignificant effects. In the short run, however, the PMG estimates show that aid grants and technical cooperation grants have negative and insignificant effects on GDP per capita growth. On the other hand, results based on the DFE estimators reveal that neither of the aid grants has influenced the unemployment rate positively in the short run. However, whereas aid grants contribute significantly to the reduction of the unemployment rate in the long run, technical cooperation grants do not. This study complements the attendant literature by assessing how aid grants versus technical cooperation grants affect inclusive growth. The findings are relevant to international policy coordination for the attainment of sustainable development goals.

show abstract

Tax structure, human capital, and inclusive growth: A sub‐Saharan Africa perspective

Oyinlola

Adedeji

2021

Journal of Public Affairs

View full text Add to dashboard Cite

This study examines the critical role of tax structure in the human capital-inclusive growth nexus. We deploy the fixed effects model to investigate this relationship in 26 sub-Saharan African countries between 1995 and 2014. The study explores aggregate and disaggregated taxes as well as per capita public expenditures on education and health. Our results indicate that human capital measures exert a direct strong and positive effects on inclusive growth. Also, the results reveal that aggregate and disaggregated taxes largely influence inclusive growth positively. In essence, human capital and taxes are found to be viable options to promote growth inclusiveness. On the interaction, the results indicate that direct and indirect taxes positively influence inclusive growth through health measure of human capital while only trade tax facilitates education impact on inclusive growth. Hence, addressing resource paucity through tax and expanding the investment in education and health is vital and should be the key goals of the policymakers in the SSA region.

show abstract

Inclusive Growth: Measurement and Determinants

Cited by 51 publications

References 26 publications

Towards shared prosperity in sub‐Saharan Africa: How does the effect of economic integration compare to social equity policies?

Towards shared prosperity in sub‐Saharan Africa: How does the effect of economic integration compare to social equity policies?

Aid grants versus technical cooperation grants: Implications for inclusive growth in Sub‐Saharan Africa, 1984–2018

Tax structure, human capital, and inclusive growth: A sub‐Saharan Africa perspective

Contact Info

Product

Resources

About