The Rise of the Middle Class and Economic Growth in ASEAN

We present instrumental variables estimates of the relationship between the share of income accruing to the middle class and GDP per capita. The increase in GDP per capita that ASEAN economies experienced during 1970–2010 significantly contributed to a higher share of income accruing to the middle c...

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Main Authors:	Brueckner, Markus, Dabla-Norris, Era, Gradstein, Mark, Lederman, Daniel
Format:	Journal Article
Published:	Elsevier 2018
Subjects:	INEQUALITY ECONOMIC GROWTH ASEAN MIDDLE CLASS
Online Access:	http://hdl.handle.net/10986/29296

id	okr-10986-29296
recordtype	oai_dc
spelling	okr-10986-292962021-05-25T10:54:43Z The Rise of the Middle Class and Economic Growth in ASEAN Brueckner, Markus Dabla-Norris, Era Gradstein, Mark Lederman, Daniel INEQUALITY ECONOMIC GROWTH ASEAN MIDDLE CLASS We present instrumental variables estimates of the relationship between the share of income accruing to the middle class and GDP per capita. The increase in GDP per capita that ASEAN economies experienced during 1970–2010 significantly contributed to a higher share of income accruing to the middle class in these countries. Econometric model estimates show that the impact of a rise of the middle class on economic growth depends on initial levels of GDP per capita. In the majority of ASEAN countries, a rise of the middle class that is unrelated to GDP per capita growth would have had a significant negative effect on economic growth for levels of ASEAN economies' GDP per capita in 1970. In contrast, for recent values of GDP per capita a rise of the middle class would positively contribute to growth of GDP per capita in ASEAN. We show that investment is an important channel through which the income share of the middle class affects economic growth. 2018-02-01T18:14:22Z 2018-02-01T18:14:22Z 2018-01-05 Journal Article Journal of Asian Economics 1049-0078 http://hdl.handle.net/10986/29296 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research East Asia and Pacific Southeast Asia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	INEQUALITY ECONOMIC GROWTH ASEAN MIDDLE CLASS
spellingShingle	INEQUALITY ECONOMIC GROWTH ASEAN MIDDLE CLASS Brueckner, Markus Dabla-Norris, Era Gradstein, Mark Lederman, Daniel The Rise of the Middle Class and Economic Growth in ASEAN
geographic_facet	East Asia and Pacific Southeast Asia
description	We present instrumental variables estimates of the relationship between the share of income accruing to the middle class and GDP per capita. The increase in GDP per capita that ASEAN economies experienced during 1970–2010 significantly contributed to a higher share of income accruing to the middle class in these countries. Econometric model estimates show that the impact of a rise of the middle class on economic growth depends on initial levels of GDP per capita. In the majority of ASEAN countries, a rise of the middle class that is unrelated to GDP per capita growth would have had a significant negative effect on economic growth for levels of ASEAN economies' GDP per capita in 1970. In contrast, for recent values of GDP per capita a rise of the middle class would positively contribute to growth of GDP per capita in ASEAN. We show that investment is an important channel through which the income share of the middle class affects economic growth.
format	Journal Article
author	Brueckner, Markus Dabla-Norris, Era Gradstein, Mark Lederman, Daniel
author_facet	Brueckner, Markus Dabla-Norris, Era Gradstein, Mark Lederman, Daniel
author_sort	Brueckner, Markus
title	The Rise of the Middle Class and Economic Growth in ASEAN
title_short	The Rise of the Middle Class and Economic Growth in ASEAN
title_full	The Rise of the Middle Class and Economic Growth in ASEAN
title_fullStr	The Rise of the Middle Class and Economic Growth in ASEAN
title_full_unstemmed	The Rise of the Middle Class and Economic Growth in ASEAN
title_sort	rise of the middle class and economic growth in asean
publisher	Elsevier
publishDate	2018
url	http://hdl.handle.net/10986/29296
_version_	1764468990195793920

The Rise of the Middle Class and Economic Growth in ASEAN

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