In Search of Inclusive Growth: The Role of Economic Institutions and Policy

Francis Y. Kumah, Mathew Sandy

International Monetary Fund, Washington DC, USA.

DOI: 10.4236/me.2013.411081                

Abstract

Inclusive economic growth is one of key challenges facing countries across the globe, notwithstanding initial conditions, particularly following the 2008 global economic slowdown. This paper searches for links between the quality of institutions, economic policies, economic growth and employment creation in low-income countries, using the specific case of Sierra Leone to illustrate. While its findings are consistent with the literature, the paper suggests that re-focusing economic policies on per capita real GDP growth may yield employment dividends, but well-targeted interventions would be needed to cater for the unemployed and to support vulnerable groups which may be adversely impacted by the very policies that drive growth.

Keywords

Inclusive Growth; Macroeconomic Policy; Economic Institutions; Penalty Function; Job Placement; Absolute Poverty

Conflicts of Interest

The authors declare no conflicts of interest.

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