Cover IMF Working Papers
Inclusive Growth: Measurement and Determinants
Author: Rahul Anand, Mr. Saurabh Mishra, and Mr. Shanaka J Peiris
Series:
IMF Working Papers
Volume/Issue:
Volume 2013: Issue 135
Language:
English
Publication Date:
30 May 2013
DOI:
https://doi.org/10.5089/9781484323212.001
ISBN:
9781484323212
ISSN:
1018-5941
Pages:
27
Keywords:
WP; income; economic growth; pro-poor growth; distribution; equity; inequality; inclusive growth; distribution outcome; income growth; income contraction; value chain; low income country; equity index of income; Personal income; Income inequality; Income distribution; Stocks; Global; Middle East and Central Asia; Western Hemisphere
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund