This paper empirically analyses the simultaneous impacts of structural re-forms - trade liberalization, capital account liberalization, and financial liberal-ization - on inclusive growth using panel data for 17 APEC member econ-omies covering years from 1970 to 2016. The results show that capital ac-count liberalization and growth of market capitalization are positively associ-ated 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 implica-tions 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 addi-tion, they need to design policies to increase access to the financial sector for the poor and socially marginalized people.
 

Executive Summary

I. Introduction

II. Income Inequality and Inclusive Growth

2.1. Income Inequality of APEC Members
2.2. Literature Review on Inclusive Growth

III. Developments in Structural Reforms in APEC
3.1. Trade Liberalization
3.2. Financial Liberalization

IV. Empirical Analysis
4.1. Model
4.2. Data
4.3. Results

V. Conclusion and Policy Implications

References