Table 1.

Study variables

VariableMeasurementExpected relationshipSupporting literatureSource
Inclusive growth index (IGI)An index estimated using headcount, Gini index, poverty severity, economic participation and GDP per capita variables  Authors’ construct
Economic growth (GDPC)GDP per capita growth (annual percentage) Marrero and Servén (2022), Mitra and Das (2018) World Bank (world development indicators)
Economic participation (ECP)Total labor force participation rate for individuals aged 15–64 (percentage of the total population) Sarpong and Nketiah-Amponsah (2022) 
Poverty severity (POVS)Poverty gap squared (2017 PPP) Kanbur and Mukherjee (2007) World Bank (poverty and inequality platform)
Headcount (HPR)Poverty headcount ratio (2017 PPP) (% of population) Mitra and Das (2018), Sarpong and Nketiah-Amponsah (2022) 
Gini index (Gini)Gini index (World Bank estimate) Chia et al. (2022), Gründler and Scheuermeyer (2018), Stawska and Jabłońska (2021) 
De facto fiscal space (DFSP)Measurement [4]Aizenman and Jinjarak (2010), Aslan (2022) Authors’ construct
Fiscal balance (FSB)Fiscal balance (percentage of GDP)+Karadima and Louri (2022), Putri et al. (2022)  
Control of corruption (CC); political stability and absence of violence/terrorism (PS); voice and accountability (VC); rule of law (RL); regulatory quality (RQ); government effectiveness (GE)Estimates provided+Oyinlola and Adedeji (2022), Sarpong and Nketiah-Amponsah (2022) Worldwide governance indicators
Governance quality average (GQ)Average scores for the six World Bank Governance Indicators+Sarpong and Nketiah-Amponsah (2022) Author’s calculation using worldwide governance indicators data set
Foreign direct investment (FDI)Foreign direct investment, net inflows (percentage of GDP)+Oyinlola and Adedeji (2022), Stawska and Jabłońska (2021) World Bank (world development indicators)
Inflation (CPI)Annual year-on-year percentage change of CPIAoyagi and Ganelli (2015) 
Digitalization (DGN)Mobile cellular subscriptions (per 100 people) in log+Alekhina and Ganelli (2021), Anand et al. (2013) 
Source: Authors

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