Pakistan Institute of Development Economics



Measurement and Determinants of Inclusive Growth: A Case Study ofPakistan (1990-2012)

Equality of opportunity is the core of inclusive growth, andthe inclusive growth emphasises to create employment and otherdevelopment opportunities through rapid and sustained economic growth,and to promote social justice and the equality of sharing of growthresults by reducing and eliminating inequality of opportunity. The mainobjective of the study is to measure the inclusive growth first and thenempirically examine its determinants. To measure the inclusive growth,we use the methodology developed by Asian Development Bank using weightsand scores of different indicators. We develop a unified measure ofinclusive growth, which integrates growth, inequality, accessibility andgovernance into one single measure. Results show that Pakistan is atsatisfactory performance level with respect to its performance in growthinclusiveness. Further results of ARDL show that macroeconomic stabilityand social financial deepening are important determinants to enhance theinclusiveness, and reduce poverty and inequality, while reforms in tradesector are required to increase their efficiency in terms ofinclusiveness. JEL Classification: O4 Keywords: Inclusive Growth,Poverty Reduction, Income Inequality, Equity, Accessibility, SocialProtection

Azra Khan,

Gulzar Khan,

Sadia Safdar,

Sehar Munir,

Zubaria Andleeb