International Trade and Inclusive Growth : A Primer for Busy Policy Analysts
This note provides two analytical frameworks for understanding the role of trade in promoting inclusive growth in developing economies. A working definition of inclusive growth focuses on long-term, sustained growth associated with productivity gro...
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111122143009 http://hdl.handle.net/10986/3654 |
| Summary: | This note provides two analytical
frameworks for understanding the role of trade in promoting
inclusive growth in developing economies. A working
definition of inclusive growth focuses on long-term,
sustained growth associated with productivity growth and
employment opportunities for broad portions of households
and firms within countries. International integration can
promote inclusive growth when workers and firms are able to
adjust to enter into growing economic activities and adopt
technologies availed through international trade. The
frameworks described in this note build on simple household
and firm choice models, which require only basic knowledge
of development economics. The discussion highlights how
these frameworks can help analysts focus on research and
policy questions related to the impacts of international
trade across the distribution of households and firms within
countries. It also discusses publicly available data sets
that can be used to explore some aspects of inclusive
growth. In addition, the note highlights important caveats
that need to be acknowledged by analysts and discusses
avenues for future research, which needs to be part and
parcel of the inclusive growth agenda. |
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