Figure 4 - uploaded by Maarten Keune
Content may be subject to copyright.
Source publication
The aim of this article is to discuss the ‘inclusive growth’ proposals made by the IMF, the OECD and the EU, and to examine to what extent these proposals are consistent with the objective to be achieved. To do this, we examine the importance of two ‘missing links’ commonly overlooked by these institutions when promoting ‘inclusive growth’: functio...
Context in source publication
Context 1
... to Jacobson and Occhino (2012), the decline in the wage share from 1979 to 2007 raised the Gini index by 2.3 percentage points in the case of the US economy. As can be seen in figure 4, this inverse relationship can also be demonstrated with our data sample, a panel of all OECD and EU economies for the period 1990-2018. Thus, the wage share decline seems to go hand in hand with increased income inequality. ...
Citations
... 8 We believe that our framework can be extended to include these additional dimensions of inclusivity even though we do not explicitly attempt such extension in this book. At the same time, however, it is important to note that according to Álvarez, Keune, Cruces and Uxó (2021), the (functional) distribution of income and collective bargaining are two interrelated and overlooked 'missing links' in the majority of inclusive growth proposals. If nothing else, the analysis in this book addresses these lacunae directly. ...
This article examines the impact of corporate financialization on the labour share using data for publicly listed non‐financial corporations across 14 European countries. We test hypotheses derived from industrial relations literature on financialization against competing explanations for the labour share decline based on technological change and market concentration. Our findings show that increased dividend and interest payments, as well as financial profits, are associated with a fall in the labour share. These results support theories linking corporate financialization to rising overhead costs, shareholder‐value orientation and increasing exit options for capital. We find no evidence that technological progress drives the decline in the labour share. While market concentration negatively correlates with the labour share, concentration has decreased during our sample period, suggesting that ‘superstar firms’ are also not the primary driver of changes in functional income distribution.
Introduction/Purpose:
Inclusive economic growth is a concept that has taken on importance in recent years globally; however, it has scarcely been studied in Peru. This research aims to know if there exists a positive relationship between inclusive economic growth and international trade in Peru in the period 2000-2021.
Methodology:
Inclusive economic growth was measured using the pillars of growth and development (per capita GDP, labour productivity, employment, and life expectancy) and inclusion (income concentration and poverty) of the Inclusive Development Index (IDI) proposed by the World Economic Forum. The Ordinary Least Squares (OLS) method was used to perform the regressions.
Findings:
The results show that the growth of International Trade in Peru has a positive relationship with two of the indicators of inclusive economic growth analysed: real GDP per capita and Vulnerable Employment. In contrast, it has a negative relationship with Labour Productivity. There is no statistical significance for the Poverty variable. Furthermore, there is no cointegration between Peruvian International Trade and Life Expectancy at Birth or Income Distribution.
Conclusions:
Therefore, it is concluded that inclusive economic growth has a positive relationship with Peruvian International Trade. The study focuses on four development pillars and two inclusion pillars, so the analysis will serve to propose policies that promote inclusive economic growth in Peru.
