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Journals / İktisadi İdari ve Siyasal Araştırmalar Dergisi / 2026 / Sayı: 29

The Impact of Financial Development on Income Inequality and Poverty: A Panel Data Analysis

Finansal Gelişmenin Gelir Eşitsizliği ve Yoksulluk Üzerine Etkisi: Panel Veri Analizi

Rıdvan Özturgut(MEHMET AKİF ERSOY ÜNİVERSİTESİ)0000-0001-6694-2808
Ertan Beceren(SÜLEYMAN DEMİREL ÜNİVERSİTESİ)0000-0003-1314-5607
Murat Belke(MEHMET AKİF ERSOY ÜNİVERSİTESİ)0000-0002-3299-7162
Pages
420–442
Publication Date
2026-05-11
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The findings indicate that the effects of financial development are heterogeneous across countries.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study examines the effects of financial development on income inequality and poverty using a panel dataset of 116 developed and developing countries covering the period 1980–2021.
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Key Findings & Data:Financial development is proxied by the IMF Financial Development Index, and interaction terms are incorporated to evaluate how structural factors such as education, income level, infrastructure, and globalization shape the impact of financial development.
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Conclusion & Impact:The findings indicate that the effects of financial development are heterogeneous across countries.
🔬Design:Araştırma Makalesi
📍Scope:2021 Verileri
⚙️Variables:Finansal Gelişme · Gelir Eşitsizliği · Yoksulluk

Abstract

This study examines the effects of financial development on income inequality and poverty using a panel dataset of 116 developed and developing countries covering the period 1980–2021. It further investigates whether these effects vary according to countries’ structural characteristics, including education level, per capita income, inflation, public expenditures, trade openness, population dynamics, and infrastructure indicators. Methodologically, the analysis employs the Driscoll–Kraay standard errors estimator to address cross-sectional dependence and autocorrelation in panel data. Financial development is proxied by the IMF Financial Development Index, and interaction terms are incorporated to evaluate how structural factors such as education, income level, infrastructure, and globalization shape the impact of financial development. The findings indicate that the effects of financial development are heterogeneous across countries. While financial development contributes to poverty reduction, particularly by improving access for low-income groups, it may increase income inequality under conditions of higher education, stronger infrastructure, and greater globalization. In conclusion, the study suggests that policies should be designed in a flexible and inclusive manner, taking into account country-specific dynamics, in order to harness the positive effects of financial development in reducing income inequality and poverty.

Özet

Bu çalışma, 1980–2021 dönemini kapsayan 116 gelişmiş ve gelişmekte olan ülkeye ait panel veri seti kullanılarak finansal gelişmenin gelir eşitsizliği ve yoksulluk üzerindeki etkilerini incelemeyi ve bu etkilerin ülkelerin yapısal özellikleri (eğitim düzeyi, kişi başına düşen gelir, enflasyon oranı, kamu harcamaları, dışa açıklık, nüfus dinamikleri ve altyapı göstergeleri) çerçevesinde farklılaşıp farklılaşmadığını analiz etmeyi amaçlamaktadır. Yöntem olarak, panel veri setlerinde sıkça karşılaşılan yatay kesit bağımlılığı ve otokorelasyon sorunlarını dikkate alan Driscoll-Kraay tahmincisi kullanılmıştır. Modelde finansal gelişme IMF endeksi ile ölçülürken; eğitim, gelir düzeyi, altyapı ve ekonomik küreselleşme gibi faktörlerin finansal gelişme ile olan etkileşimleri kapsamlı bir şekilde irdelenmiştir. Elde edilen bulgular, finansal gelişmenin etkilerinin ülkelerin ekonomik ve sosyal yapılarına göre değiştiğini göstermektedir. Finansal gelişme, özellikle düşük gelir gruplarının erişimini artırdığında yoksulluğu azaltma potansiyeli taşımaktadır. Ancak bulgular, yüksek eğitim ve altyapı seviyelerinde veya artan küreselleşme koşullarında finansal gelişmenin gelir eşitsizliğini artırıcı etkiler gösterebileceğini de ortaya koymaktadır. Sonuç olarak çalışma, finansal gelişmenin gelir eşitsizliği ve yoksulluk üzerindeki olumlu etkisinden faydalanabilmek için ülkelerin yapısal özelliklerini dikkate alan politikaların esnek, kapsayıcı ve ülkeye özgü dinamikleri gözetecek şekilde tasarlanması gerektiğini önermektedir.

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Cite This Article

Özturgut, R., Beceren, E., Belke, M. (2026). The Impact of Financial Development on Income Inequality and Poverty: A Panel Data Analysis. İktisadi İdari ve Siyasal Araştırmalar Dergisi, Sayı: 29, 420–442. https://doi.org/10.25204/iktisad.1830470

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