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The quest for pro-poor and inclusive growth: The role of governance

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  • Djeneba Doumbia

    (World Bank and Paris School of Economics)

Abstract

This paper analyzes the role of good governance in fostering pro-poor and inclusive growth. Using a sample of 112 countries over the period 1975-2012, the main results show that growth is in general pro-poor. However, growth has not been inclusive – as illustrated by a decline in the bottom quintile share of the income distribution. While all features of good governance support income growth and reduce poverty, only government effectiveness and the rule of law are found to enhance inclusive growth. Investigating the determinants of pro-poor and inclusive growth highlights that education strategies, infrastructure improvement and financial development are the key factors for poverty reduction and inclusive growth. Relying on the Panel Smooth Transition Regression (PSTR) model following Gonzalez et al. (2005), the paper identifies a nonlinear relationship between governance and pro-poor growth while the impact of governance on inclusive growth appears to be linear.

Suggested Citation

  • Djeneba Doumbia, 2018. "The quest for pro-poor and inclusive growth: The role of governance," Working Papers 458, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2018-458
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    3. Murshed, Muntasir, 2023. "The relevance of reducing income inequality for eliminating urban-rural divide in clean cooking fuel accessibility: Evidence from Latin America and the Caribbean," Energy, Elsevier, vol. 278(C).
    4. Ahmed Raza Cheema & Aqleema Noor & Jabbar Ul-Haq, 2021. "Do Foreign Remittances Lead To Inclusive Growth In Pakistan?," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(2), pages 198-203.
    5. Oumar Diallo & Cheick S. Diarra & Kavazeua U. Katjomuise, 2020. "The Istanbul programme of action for the least developed countries: What does it add?," Development Policy Review, Overseas Development Institute, vol. 38(4), pages 521-537, July.
    6. Dwumfour, Richard Adjei & Pan, Lei & Harris, Mark N., 2023. "FDI and development redux: Is R&D a substitute for FDIs?," MPRA Paper 116117, University Library of Munich, Germany.
    7. Kazi Musa & Norli Ali & Jamaliah Said & Farha Ghapar & Oleg Mariev & Norhayati Mohamed & Hirnissa Mohd Tahir, 2023. "Does the Effectiveness of Budget Deficit Vary between Welfare and Non-Welfare Countries?," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    8. Muhammad Kamran & Muhammad Zahid Rafique & Abdul Majeed Nadeem & Sofia Anwar, 2023. "Does Inclusive Growth Contribute Towards Sustainable Development? Evidence from Selected Developing Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(2), pages 409-429, January.
    9. Junru Song & Hongcan Zhou & Yanchen Gao & Yongpan Guan, 2022. "Digital Inclusive Finance, Human Capital and Inclusive Green Development—Evidence from China," Sustainability, MDPI, vol. 14(16), pages 1-15, August.
    10. Samuel Kwaku Agyei & Godwin Adolf Idan, 2022. "Trade Openness, Institutions, and Inclusive Growth in Sub-Saharan Africa," SAGE Open, , vol. 12(2), pages 21582440221, May.

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    More about this item

    Keywords

    pro-poor growth; inclusive growth; governance; PSTR.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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