The Inclusive Growth Approach
The HRV framework is just one among many approaches to inclusive growth analytics. It is particularly relevant in cases where the income level is low, growth is slow and investments are low. Against this background, the HRV framework is an appropriate framework to study issues of inclusive growth since growth is the main driver
market failures, such as coordination externalities and learning externalities affecting negatively the country’s ability to adopt new technologies.
17 The HRV framework includes human capital as a likely constraint from the perspective of firms, but does not look at whether skills limit the ability of certain groups to engage in economic development, and the constraints limiting investment in human capital.