Measurement of inclusive growth: evidence from Tunisia
-
DOIhttp://dx.doi.org/10.21511/ed.18(3).2019.03
-
Article InfoVolume 18 2019, Issue #3, pp. 19-33
- Cited by
- 748 Views
-
171 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
In most economies, strategies that promote greater equity and less precariousness have become more than a necessity for reducing the effects of poverty. Thus, the focus is on inclusive growth by policy makers and institutions in charge of development and poverty alleviation. For Tunisia, there was a broad consensus on the need for structural reforms to promote inclusive economic growth that reduce social inequalities and regional disparities. This article aims to determine a synthetic indicator of inclusive growth in Tunisia. The method used is the Principal Component Analysis (PCA). The purpose of the latter is to provide weightings that take into account the variability of the data through time. The results found showed that Tunisia’s Inclusive Growth Index (IGI) deteriorated during the period from 1980 to 2017, falling from 5.35 to –3.40. The Tunisian government must embark on deep structural reforms to open up channels for a more egalitarian and inclusive society and put the country on a path to more sustainable development.
- Keywords
-
JEL Classification (Paper profile tab)D63, O4, R11
-
References46
-
Tables5
-
Figures1
-
- Figure 1. The Synthetic Index of Inclusive Growth in Tunisia
-
- Table 1. Presentation of the variables
- Table 2. Descriptive statistics
- Table 3. Correlation matrix
- Table 4. Choice of axes
- Table 5. Square cosines of the variables
-
- Alesina, A., & Perotti, R. (1994). The Political Economy of Growth: a Critical Survey of the Recent Literature (English). The World Bank Economic Review, 8(3), 351-371.
- Alesina, A., & Rodrik, D. (1994). Distributive Politics and Economic Growth. The Quarterly Journal of Economics, 109(2), 465-490.
- Ali, I. (2007b). Inequality and the Imperative for Inclusive Growth in Asia. Asian Development Review, 24(2), 1-16.
- Ali, I., & Son, H. (2007a). Defining and Measuring Inclusive Growth: Application to the Philippines (Working Paper No. 98).
- Ali, I., & Son, H. (2007b). Measuring Inclusive Growth. Asian Development Review 24(1), 11-31.
- Ali, I., & Zhuang, J. (2007). Inclusive Growth toward a Prosperous Asia: Policy Implications (Working Paper No. 97). Asian Development Bank.
- Anand, R., Saurabh, M., & Shanaka, J. P. (2013). Inclusive Growth: Measurement and Determinants (Working Paper No. 13/135).
- Anand, S., & Kanbur, S. R. (1993a). Inequality and Development a Critique. Journal of Development economics, 41(1), 19-43.
- Anand, S., & Kanbur, S. R. (1993b). The Kuznets Process and the Inequality-Development relationship. Journal of Development Economics, 40(1), 25-52.
- Atkinson, A. B. (1970). On the Measurement of Inequality. Journal of Economic Theory, 2(3), 244-263.
- Berg, A., & Ostry, J. (2011). Inequality and Unsustainable Growth: Two Sides of the Same Coin? (IMF staff discussion note, SDN/11/08) (20 p.). Washington: International Monetary Fund.
- Bourguignon, F. (2003). The Growth Elasticity of Poverty Reduction: Explaining Heterogeneity Across Countries and Time Periods (DELTA Working Papers 2002-03) (24 p.).
- De Mello, L., & Dutz, M. (Eds.) (2012). Promoting Inclusive Growth: Challenges and Policies. OECD Publishing.
- Deininger, K., & Squire, L. (1998). New Ways of Looking at Old Issues: Inequality and Growth. Journal of Development Economics, 57(2), 259-287.
- Dollar, D., & Kraay, A. (2002). Growth is Good for the Poor. Journal of Economic Growth, 7(3), 195-225.
- Felipe, J. (2010). Inclusive growth, full employment, and structural change: implications and policies for developing Asia. London: ADB and Anthem Press. 17. Gurria, A. (2014). All on board: making inclusive growth happen (197 p.).
- Gurria, A. (2014). All on board: making inclusive growth happen (197 p.).
- Hakimian, H. (2013). The search for inclusive growth in North Africa: a comparative approach. Economic Brief.
- Hoeller, P., Joumard, I., Pisu, M., & Bloch, D. (2012). Less Income Inequality and More Growth – are they Compatible? Part 1. Mapping Income Inequality Across the OECD (Working Paper, No. 924). France: OECD publishing.
- Ianchovichina, E., & Lundstrom, S. (2009). Inclusive growth analytics: framework and application (World Bank Policy Research Working Paper No. 4851).
- International Labour Office (2016). Women at Work: Trends 2016. Geneva: International Labour Office.
- Kakawni, N. (1993). Poverty and Economic Growth with Application to Cote D’Ivoire. The Review of Income and Wealth, 39(2), 121-139.
- Kakwani, N., & Pernia, E. (2000). What is Pro-poor Growth? Asian Development Review, 16(1), 1-22.
- Kakwani, N., Khandker, S., & Son, H. (2002). Poverty equivalent growth rate: with applications to Korea and Thailand (economic commission for Africa, technical report).
- Kanbur, R. (2000). Income distribution and development. In A. B. Atkinson, & F. Bourguignon (Eds.), Handbook of income distribution, 1 (pp. 791-841). Amsterdam: North-Holland.
- Klasen, S. (2005). Economic Growth and Poverty Reduction: Measurement and Policy Issues (Working Paper No. 246). Paris: OECD publisher.
- Klasen, S. (2010). Measuring and monitoring inclusive growth: multiple definitions, open questions, and some constructive proposals (ADB Sustainable Development Working Paper Series, No. 12).
- Kolm, S. (1969). The optimal production of social justice. In Margolis, J., & Guitton, S. (Ed.). Public economics (page 145-200). London: MacMillan.
- Kraay, A. (2004). When is growth pro-poor? Cross-country evidence (IMF Working Paper No. 04/47).
- Kuznets, S. (1955). Economic growth and income inequality. The American economic review, 45(1), 1-28.
- Loungani, P. (2017a). Inclusive Growth and the IMF. IFMIblog.
- Loungani, P. (2017b). The Power of Two: Inclusive Growth and the IMF. Intereconomics, 52(2), 92-99.
- OECD (2011). How’s Life? Measuring Well-being. Paris: OECD Publishing.
- OECD (2015a). All on Board: Making Inclusive Growth Happen. Paris: OECD Publishing.
- OECD (2015b). Fiscal Sustainability of Health Systems: Bridging Finance and Health Perspectives. Paris: OECD Publishing.
- OECD (2015b). Metropolitan areas (OECD Regional Statistics).
- Paciello, M. C. (2011). The Arab Spring: Socio-economic Challenges and Opportunities (Document IAI 11 15E). Istituto Affari Internazionali.
- Rauniyar, G., & Kanbur, R. (2010). Inclusive Development: Two Papers on Conceptualization, Application, and the ADB Perspective (Working Papers 57036). Cornell University.
- Ravallion, M. (2001). Growth, Inequality and Poverty: Looking Beyond Averages. World Development, 29(11), 1803-1815.
- Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70(1), 65-94.
- Tandon, A., & Zhuang, J. (2007). Inclusiveness of economic growth in the people’s Republic of China: what do population health outcomes tell us? (ERD Policy Brief, No. 47) (19 p.). Asian Development Bank.
- United Nations (2011). Canberra Group Handbook on Household Income Statistics (second edition). Geneva: United Nations.
- United Nations Development Programme (2015). Growing Inclusive Markets.
- White, H., & Anderson, E. (2001). Growth Versus Distribution: Does the Pattern of Growth Matter? Development Policy Review, 19(3), 267-289.
- World Bank (2009). What is Inclusive Growth?
- World Bank (2016). Taking on Inequality: Poverty and Shared Prosperity 2016. Washington: World Bank.
-
Why are we going to Green microfinance in Tunisia?
The aim of this paper is to shed light on the challenges that microfinance and the sustainability of its institutions (MFIs) can face when dealing with financial crisis and the alleviation of global poverty. Apart from its economic and social effects, microfinance has come to respond to increasing demands and take the environmental aspect into account, hence, the appearance of green microfinance. The pivotal role of the latter is to foster economic growth and investment through increasing the quality of the environment and the social inclusion. In this context, Tunisia has shown interest in the introduction of a new regulation that facilitates the allocation of green micro-credits. In order to combat poverty and reduce unemployment, ecological credits have been granted by the ENDA Tamweel microfinance institution. The ultimate goal of this study is to present the tendency of this new financing mechanism in Tunisia to achieve sustainable environmental development.
-
Quantitative relationship between corruption and development of the Tunisian stock market
Ibtissem Missaoui , Mohsen Brahmi
,
Jaleleddine BenRajeb
doi: http://dx.doi.org/10.21511/pmf.07(2).2018.04
Public and Municipal Finance Volume 7, 2018 Issue #2 pp. 39-47 Views: 1458 Downloads: 137 TO CITE АНОТАЦІЯThe aim of this article is to seek especially the impact of corruption on the bond and stock market development. For the methodology/approach, the authors analyze a sample of 20 listed Tunisian firms from the Stock Exchange and Financial market, covering the period from 2006 to 2016 by using pooling cross section techniques. The results find a significant positive effect of the level of corruption on the stock market index and the logarithm of capitalization. This is consistent with the view that corruption accelerates the economic growth by speeding up transactions and allowing private companies to overcome the inefficiencies imposed by the government. Furthermore, the results find a negative association is not significant with the dependent variable of traded value as a percentage of the number of listed companies.
-
Impact of FDI inflow, crude oil prices, and economic growth on CO2 emission in Tunisia: Symmetric and asymmetric analysis through ARDL and NARDL approach
Tarek Ghazouani
doi: http://dx.doi.org/10.21511/ee.12(1).2021.01
Environmental Economics Volume 12, 2021 Issue #1 pp. 1-13 Views: 1172 Downloads: 237 TO CITE АНОТАЦІЯThis study explores the symmetric and asymmetric impact of real GDP per capita, FDI inflow, and crude oil price on CO2 emission in Tunisia for the 1972–2016 period. Using the cointegration tests, namely ARDL and NARDL bound test, the results show that the variables are associated in a long run relationship. Long run estimates from both approach confirms the validity of ECK hypothesis for Tunisia. Symmetric analysis reveals that economic growth and the price of crude oil adversely affect the environment, in contrast to FDI inflows that reduce CO2 emissions in the long run. Whereas the asymmetric analysis show that increase in crude oil price harm the environment and decrease in crude oil price have positive repercussions on the environment. The causality analysis suggests that a bilateral link exists between economic growth and carbon emissions and a one-way causality ranges from FDI inflows and crude oil prices to carbon emissions. Thus, some policy recommendations have been formulated to help Tunisia reduce carbon emissions and support economic development.
