Measuring Institutional Inclusiveness: New Indices and Their Relationship
with Prosperity, Growth, and Over-Inclusiveness

Ayden Choi

doi:10.46609/IJSSER.2025.v10i09.013

Title: Measuring Institutional Inclusiveness: New Indices and Their Relationship with Prosperity, Growth, and Over-Inclusiveness
Authors: Ayden Choi
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 10 Issue: 9 Publication Date: September 2025 DOI: 10.46609/IJSSER.2025.v10i09.013
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Ayden Choi The National Mathematics and Science College, United Kingdom
MLA 8 Choi, Ayden. "Measuring Institutional Inclusiveness: New Indices and Their Relationship with Prosperity, Growth, and Over-Inclusiveness." Int. j. of Social Science and Economic Research, vol. 10, no. 9, Sept. 2025, pp. 3839-3862, doi.org/10.46609/IJSSER.2025.v10i09.013. Accessed Sept. 2025. APA 6 Choi, A. (2025, September). Measuring Institutional Inclusiveness: New Indices and Their Relationship with Prosperity, Growth, and Over-Inclusiveness. Int. j. of Social Science and Economic Research, 10(9), 3839-3862. Retrieved from https://doi.org/10.46609/IJSSER.2025.v10i09.013 Chicago Choi, Ayden. "Measuring Institutional Inclusiveness: New Indices and Their Relationship with Prosperity, Growth, and Over-Inclusiveness." Int. j. of Social Science and Economic Research 10, no. 9 (September 2025), 3839-3862. Accessed September, 2025. https://doi.org/10.46609/IJSSER.2025.v10i09.013.
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ABSTRACT: This study developed three new indices of institutional inclusiveness: the Political Inclusiveness Index (PII), the Economic Inclusiveness Index (EII), and their composite measure of the Institutional Inclusiveness Index (III). These indices established a systematic framework for evaluating the role of inclusiveness in development. Through cross-country econometric analysis, three key propositions were examined, including the “over-inclusiveness” hypothesis that suggested that inclusiveness above an “optimal threshold” could hinder growth; the association between inclusiveness and development outcomes, measured by GDP per capita and economic growth; and the hypothesised self-reinforcing cycle linking political and economic institutions. The results indicated that inclusiveness was positively correlated with prosperity, while its influence on growth followed a non-linear pattern, with moderate levels of III proving most conducive to rapid expansion. Case studies, including those from China, Jamaica, Botswana, the United Kingdom, and France, demonstrated that departures from statistical trends were highly context dependent. Overall, the indices could not only provide a standardised method of measurement but also empirically confirm that widely held economic arguments regarding institutions can be substantiated statistically, while highlighting potential “sweet spots” in development pathways. Eventually, these findings offer policymakers quantifiable benchmarks to balance inclusiveness with growth objectives.

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