Determinants of Inclusive Growth in ASEAN

Author/Editor:

Victoriia Alekhina ; Giovanni Ganelli

Publication Date:

July 3, 2020

Electronic Access:

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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:

Frequency:

regular

English

Publication Date:

July 3, 2020

ISBN/ISSN:

9781513549194/1018-5941

Stock No:

WPIEA2020118

Pages:

39

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