Developing a multidimensional sustainable framework for measuring inclusive Growth: Evidence from Egypt

Abstract

Purposes

This study aims to develop and establish a concept referred to as Multidimensional Sustainable Inclusive Growth (MSIG), by examining inclusive growth from a micro-level perspective. Unlike previous studies that focus on the macro level, this approach seeks to offer a more realistic and precise definition and measure of inclusive growth on micro level, especially for developing countries.

Methods

The MSIG framework is constructed based on three key components.

A multidimensional participation component (measuring participation in production, adjusted by the ratio of wages to GDP), A multidimensional poverty component, and A multidimensional inequality component.

This approach introduces a comprehensive and in-depth measure of inclusive growth by integrating these dimensions into a single conceptual framework.

Findings

The results show notable variation in definitions, dimensions, and measurements of inclusive growth among existing literature. The newly developed MSIG shows: Positive growth in the years 2012, 2015, and 2019, and A decline in 2017.

The MSIGR (Multidimensional Sustainable Inclusive Growth Rate) was positive in 2012, 2015, and 2019—indicating a deterioration in inclusive growth—and negative in 2017, indicating an improvement in MSIGR.

When compared with Dudley Seers' method, both MSIGR and Seers’ inclusive growth rates display a similar trend, further validating the findings.

Conclusions

The study recommends that in developing country contexts, inclusive growth strategies should aim to be deep and multidimensional. Using comprehensive measures—such as poverty, inequality, and production participation (adjusted by wage-to-GDP ratios)—provides policymakers with nuanced insights into each component. This enables more informed decision-making and facilitates the adoption of strategies that foster sustainable and inclusive growth.