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Michael Grömling / Hans-Peter Klös IW-Policy Paper No. 1 8. February 2019 Inclusive growth: A primer for a supply-side concept

The aim of the concept of inclusive growth, which is being promoted in particular by international organisations such as the OECD, is to derive political recommendations on the basis of selected indicators so that a maximum number of socio-economic groups may benefit from the economic progress of a country.

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A primer for a supply-side concept
Michael Grömling / Hans-Peter Klös IW-Policy Paper No. 1 8. February 2019

Inclusive growth: A primer for a supply-side concept

IW-Policy Paper

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The aim of the concept of inclusive growth, which is being promoted in particular by international organisations such as the OECD, is to derive political recommendations on the basis of selected indicators so that a maximum number of socio-economic groups may benefit from the economic progress of a country.

On the one hand, this initiative continues the long-running debate on alternative welfare measures beyond GDP per capita. On the other, the discussion on the relationship between growth and distribution is being revitalised. This article deals with the potentials and limitations of the concept of inclusive growth. In principle, it would be welcomed to pay more attention to the distribution aspects of economic growth. However, conventional inclusive growth concepts bear a number of shortcomings: they are theoretically weak, institution-blind, not embedded within a growth context, and normatively shaped. The indicators used focus on results or outcome rather than on growth drivers. In addition, outcome variables are mixed with supply-side indicators. Therefore, the conventional concepts should be further developed into an institution-oriented "inclusive growth accounting" with a focus on the growth factors of labour, education and capital.

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A primer for a supply-side concept
Michael Grömling / Hans-Peter Klös IW-Policy Paper No. 1 8. February 2019

Michael Grömling / Hans-Peter Klös: Inclusive growth – A primer for a supply-side concept

IW-Policy Paper

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Investment, Human Capital and Growth Effects of Public Spending
Martin Beznoska / Björn Kauder / Thomas Obst IW-Policy Paper No. 2 3. February 2021

Investment, Human Capital and Growth Effects of Public Spending

Unlike public sector consumption, public investment is often regarded as contributing to growth. Yet while spending on "intangible" goods such as education does not count as investment, even though it is potentially growth-enhancing, expenditure with little to ...

IW

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Michael Grömling in Intereconomics External Publication 21. January 2021

COVID-19 and the Growth Potential

The lasting economic impact of the coronavirus pandemic will become apparent in the development of the macroeconomic factors of production – labour, capital, human capital as well as the stock of technical knowledge.

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