MACROECONOMIC POLICIES AND INCLUSIVE ECONOMIC GROWTH IN BRI COUNTRIES

Abstract

This study explores the influence of the macroeconomic policies on the inclusive economic growth in the Belt and Road (BRI) 149 countries from the different regions of Europe, Africa, Asia. The study investigates the short-run and long-run relationship between macroeconomic policies and inclusive economic growth using the CS-ARDL econometric model. The findings reveal that the inclusive economic growth is positively influenced by trade openness, human development and institutional quality while monetary policy, fiscal policy and gross fixed capital formation are negatively influenced. The study recommends enhancing fiscal spending on human development, promoting accessible financial systems, diversifying trade policies, improving institutional frameworks, and optimizing capital allocation to foster sustained and inclusive economic growth. The study is limited by being based on secondary data which proposes promising topics for further research to map out these insights further.