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International trade and inclusive growth: a primer

International trade and inclusive growth: a primer Purpose – This article aims to provide two analytical frameworks for understanding the role of trade in promoting inclusive growth in developing economies. Design/methodology/approach – 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. Findings – 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. Originality/value – This is a first attempt to apply an analytical definition of inclusive growth, which emphasizes second order or behavioral responses of workers and firms' profits, to understand the link between international integration and development. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Indian Growth and Development Review Emerald Publishing

International trade and inclusive growth: a primer

Indian Growth and Development Review , Volume 6 (1): 25 – Apr 12, 2013

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References (63)

Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
1753-8254
DOI
10.1108/17538251311329568
Publisher site
See Article on Publisher Site

Abstract

Purpose – This article aims to provide two analytical frameworks for understanding the role of trade in promoting inclusive growth in developing economies. Design/methodology/approach – 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. Findings – 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. Originality/value – This is a first attempt to apply an analytical definition of inclusive growth, which emphasizes second order or behavioral responses of workers and firms' profits, to understand the link between international integration and development.

Journal

Indian Growth and Development ReviewEmerald Publishing

Published: Apr 12, 2013

Keywords: Trade; Firms; Workers; Households; Inclusive growth; Companies; Economic growth

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