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Generating and sustaining economic growth can be a precondition for “better and more” distribution and, consequently, inclusive growth. If growth can be sustained not only for a single decade but also for two or more decades, such growth will surely lead to increased equity because it will push wage rates to higher levels. For example, in South Korea and Taiwan in the 1970s and 1980s, sustained growth increased wage rates, reduced poverty, and eventually led to lower inequality (Lee 2010; Bai 1982). China seems to be showing similar signs as sustained growth has caused a labor shortage and increased wage rates in the coastal regions (Jin and Lee 2013). Bhagwati and Panagariya (2013: 8) also observed that, since the 1990s, growth has tended to create more jobs and tax revenues in India that, in turn, pay for social welfare expenditures.
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- Industrial Upgrading and Innovation Capability for Inclusive Growth: Lessons from East Asia
- Palgrave Macmillan US
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