Purpose of the Study: This study examines how institutional quality and other factors—such as social spending, tax revenue, and GDP per capita—affect inclusive growth in 11 former Soviet Union countries from 2002 to 2017. Methodology: The study analyzes the Ahluwalia-Chenery Welfare Index (ACWI) to assess inclusive growth across these countries. It utilizes panel data spanning from 2002 to 2017 and employs the generalized method of moments (GMM) model to investigate the impact of institutional quality on inclusive growth. Main Findings: The results indicate that institutional quality, economic growth, and social spending positively and significantly influence the inclusiveness of economic growth. Conversely, tax revenue has a negative and substantial effect on inclusive economic growth. Applications of This Study: This research provides policymakers with a tool for evaluating the impact of institutional quality on inclusive economic growth. Novelty/Originality of This Study: Notably, the study finds that institutional quality has a more substantial impact on inclusiveness compared to economic growth.
Bilal Yaqub (Thu,) studied this question.