Determinants of Inclusive Growth in ASEAN

July 3, 2020

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Victoriia Alekhina, and Giovanni Ganelli. Determinants of Inclusive Growth in ASEAN, (USA: International Monetary Fund, 2020) accessed December 22, 2024

Disclaimer: 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.

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.

Subject: Economic growth, Fiscal redistribution, Inclusive growth, Income distribution, Income inequality, National accounts, Personal income

Keywords: ASEAN country, Asia and Pacific, Distribution data, East Asia, Economic growth, Equity, Fiscal redistribution, GDP, Inclusive growth, Income, Income distribution, Income distribution, Income inequality, Income inequality, Income share, Inequality, Inflation rate, Per capita income, Personal income, Simulation result, WP

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2020/118
Stock No:

WPIEA2020118
ISBN:

9781513549194
ISSN:

1018-5941

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