The Financial Kuznets Curve Hypothesis: An Empirical Analysis of the Turkish Economy with Structural Breaks Co-integration Tests

DUMRUL C., İLKAY S. Ç., DUMRUL Y.

SOSYOEKONOMI, cilt.29, sa.50, ss.337-359, 2021 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 29 Sayı: 50
  • Basım Tarihi: 2021
  • Doi Numarası: 10.17233/sosyoekonomi.2021.04.16
  • Dergi Adı: SOSYOEKONOMI
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, TR DİZİN (ULAKBİM)
  • Sayfa Sayıları: ss.337-359
  • Anahtar Kelimeler: Financial Kuznets Curve, Financial Development, Income Inequality
  • Erciyes Üniversitesi Adresli: Evet

Özet

Reducing income inequality is vital for sustainable development. Financial development can be an essential policy tool for reducing income inequality. In this study, the effects of financial development on income inequality in the Turkish economy are investigated in the context of the Financial Kuznets Curve Hypothesis. In the empirical part of the study, the series related to the financial development measures developed by the IMF and the series calculated with the University of Texas Inequality Project (UTIP) Data Set for income inequality is used. As a result of econometric analyzes made by considering structural breaks, the existence of a long-term co-integration relationship could not be determined. These findings show that the Financial Kuznets Curve hypothesis is not valid in Turkey in the period under consideration.