Is it an institution, digital or social inclusion that matters for inclusive growth? A panel data analysis
Amjad Naveed and
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Aribah Aslam: Nur International University
Ghulam Shabbir: Forman Christian College (A Chartered University)
Quality & Quantity: International Journal of Methodology, 2021, vol. 55, issue 1, No 16, 333-355
Abstract This study empirically examines the impact of institutional quality, social inclusion and digital inclusion on inclusive growth across different economies characterized by different income groups. Particularly, the study examines the impact of institutions on inclusive growth by using the panel data for 83 countries over the period 2010–2017. For empirical specification, we used two-steps system-GMM estimation technique to tackle endogeneity and min–max normalized indexing technique to construct the indices for inclusive growth, social inclusion, digital inclusion and institutional quality. The results of this study show that there is a direct link between institutional quality and inclusive growth for a higher-income group of countries but not in the rest of the income groups. Contribution of social and digital inclusivity is significant in all three income groups, except for social inclusion in middle-income countries. From the policy point of view, these findings suggest that establishing and strengthening the institutional structure in low- and middle-income countries can contribute towards better and higher inclusive growth.
Keywords: Social inclusion; Digital inclusion; Inclusive growth; Institutions; Panel data; System GMM (search for similar items in EconPapers)
JEL-codes: E02 F01 F41 F43 O10 O11 O17 O43 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:qualqt:v:55:y:2021:i:1:d:10.1007_s11135-020-01008-3
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