Abstract:

The fact that every economic growth is not sufficient to reduce income inequality, unemployment, and poverty and that not every household can benefit from the benefits and opportunities created by growth has turned the attention from economic growth to inclusive growth. Inclusive growth has a multidimensional structure that deals with areas such as sustainable growth and development, quality and accessibility of education and health services, income and gender inequalities, combating poverty and unemployment problems, infrastructure, and the environment, as well as economic growth. Policy implementations for inclusive growth, which express the speed and distribution of economic growth and aim for all segments of society to benefit from the opportunities created by economic growth, are increasing all over the world. This study examines the relationship between inclusive growth and public sector size in eight large emerging market economies (Argentina, China, Brazil, India, Mexico, Indonesia, Turkey, and South Africa), also called emerging market economies, using the Bootstrap Panel Rolling Window causality approach, which is a novel methodology for the 1985-2019 period. Analysis results show that inclusive growth causes government size in India, Indonesia, Mexico, and South Africa, while government size causes inclusive growth in Turkey.

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