Finansal Gelişmenin Gelir Eşitsizliği Üzerindeki Etkileri: Finansal Kuznets Eğrisi Hipotezi Türkiye İçin Geçerli mi?

Abstract

Financial development enables individuals to have better access to financial resources. As access to financial resources increases, income levels also increase. Equal distribution of the increase in income among individuals is an important research topic. Income inequality is generally measured by the gini coefficient. This paper aims to investigation of the relationship between financial development, inflation, urbanization, per capita gross fixed capital formation and Gini coefficient in case of Turkey, using Bayer-Hanck combined cointegration test, canonical cointegrating regression (CCR) and fully modified least square (FMOLS) estimators covering the period of 1987-2016. The results from the Bayer-Hanck test revealed that these variables are cointegrated. The estimated long-term coefficients obtained by the CCR and FMOLS show that inflation and gross fixed capital formation increases income inequality, whereas urbanization decreases this inequality in the long-term. In addition, the positive coefficient of financial development and the negative coefficient of the square of financial development confirm that the financial Kuznets curve hypothesis is valid for Turkey.