Determinants of Inclusive Growth in ASEAN
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Summary:
Over the past decades ASEAN countries have experienced rapid economic growth accompanied by a dramatic fall in poverty rates, but income inequality has not retreated. This research aims at identifying factors which could contribute to more equally distributed growth in ASEAN. To measure inclusive growth, we use a variable integrating per capita income growth and an equity index. A cross-country panel analysis of the impact of macro-structural factors on inclusive growth and its two components suggests that fiscal redistribution, female labor force participation, productivity growth, FDI inflows, digitalization, and savings significantly drive inclusive growth. A scenario analysis based on our econometric results suggests that the implementation of fiscal redistribution and labor market-oriented structural reforms could help significantly accelerate inclusive growth in ASEAN.
Series:
Working Paper No. 2020/118
Subject:
Economic growth Fiscal redistribution Inclusive growth Income distribution Income inequality National accounts Personal income
Frequency:
regular
English
Publication Date:
July 3, 2020
ISBN/ISSN:
9781513549194/1018-5941
Stock No:
WPIEA2020118
Pages:
39
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