Inclusive Growth and Structural Reforms in APEC Member Economies

This paper empirically analyses the simultaneous impacts of structural reforms - trade liberalization, capital account liberalization, and financial liberalization - on inclusive growth using panel data for 17 APEC member economies covering years from 1970 to 2016. The results show that capital account liberalization and growth of market capitalization are positively associated with inclusive growth of APEC member economies, especially non-high-income member economies. Trade liberalization has a negative impact on inclusive growth only of the whole income group. We further find the robust evidence that the expansion of domestic credits provided by financial sectors had a negative impact on inclusive growth. These results give implications that governments of APEC member economies need to design trade policies in a way of expanding outcomes of trade liberalization in a more inclusive way and of increasing extensive margins of export sectors. In addition, they need to design policies to increase access to the financial sector for the poor and socially marginalized people