The effect of financial development on income inequality in Turkey: An estimate of the Greenwood-Jovanovic hypothesis

IF 0.4 Q4 ECONOMICS
Emrah Koçak, Nisfet Uzay
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引用次数: 10

Abstract

Abstract This paper is the first to examine the linear and nonlinear effect of financial development on income inequality in Turkey over the period of 1980-2013. Financial development is represented by disaggregated and aggregated indicators. In this way, the effects of various financial indicators on income inequality are explained. Maki (2012) structural breaks co-integration test, and Stock and Watson (1993) dynamic ordinary least squares (DOLS) methods are followed for empirical analysis. Finally, the fully modified least squares (FM-OLS) regression analysis method developed by Philips and Hansen (1990) is used for robustness check. The estimation results of the linear relationship indicate that financial development is a mitigating effect on income inequality. These results support the inequality-narrowing hypothesis. The non-linear relationship results show that financial development first increases income inequality but after financial development reaches a certain level, this effect is reversed and financial development reduces income inequality. These results support the Greenwood-Jovanovic hypothesis. All the results strongly suggest that financial development is a mitigating or improving effect on income inequality over the long-run.
金融发展对土耳其收入不平等的影响:对Greenwood-Jovanovic假设的估计
本文首次考察了1980-2013年土耳其金融发展对收入不平等的线性和非线性影响。金融发展由分类指标和综合指标表示。通过这种方式,解释了各种金融指标对收入不平等的影响。采用Maki(2012)结构断裂协整检验,Stock和Watson(1993)动态普通最小二乘(DOLS)方法进行实证分析。最后,采用Philips和Hansen(1990)开发的完全修正最小二乘(FM-OLS)回归分析方法进行稳健性检验。线性关系的估计结果表明,金融发展对收入不平等有缓解作用。这些结果支持了不平等缩小假说。非线性关系结果表明,金融发展首先加剧了收入不平等,但在金融发展达到一定水平后,这种效应发生逆转,金融发展减少了收入不平等。这些结果支持Greenwood-Jovanovic假说。所有结果都有力地表明,从长期来看,金融发展对收入不平等具有缓解或改善作用。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
1.40
自引率
0.00%
发文量
10
审稿时长
38 weeks
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