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Journals / Bankacılar / 2021 / Cilt: 32 - Sayı: 118

Economic Growth, Financial Development, and Income Inequality: An Empirical Estimation

Ekonomik Büyüme, Finansal Gelişme ve Gelir Eşitsizliği: Ampirik Bir Tahmin

Emrah KOÇAK
Pages
48–64
DOI
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AI Summary & Key Takeaways

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

However, findings indicate that financial development has a reducing effect on inequality.

📌 3 Key Takeaways

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Objective & Hypothesis:Economists recently re-evaluate the Kuznets Curve due to increasing global inequality and focus on new indicators alongside growth to explain inequality.
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Key Findings & Data:Notable among these efforts is the argument that there may be an inverse-U-shaped relationship between financial development and inequality.
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Conclusion & Impact:However, findings indicate that financial development has a reducing effect on inequality.
🔬Design:Research Article
📍Scope:Comprehensive Sample
⚙️Variables:Domain Parameters

Abstract

Economists recently re-evaluate the Kuznets Curve due to increasing global inequality and focus on new indicators alongside growth to explain inequality. Notable among these efforts is the argument that there may be an inverse-U-shaped relationship between financial development and inequality. This paper aims to contribute to the discussions in the literature by analysing the effect of financial development on income inequality in emerging economies with empirical methods. While the results confirm the inverse-U hypothesis between economic growth and income inequality, such a relationship between financial development and income inequality is not supported. However, findings indicate that financial development has a reducing effect on inequality. Eventually, some political implications for tackling inequality are evaluated.

Özet

Son yıllarda ekonomistler artan küresel eşitsizlik nedeniyle Kuznets Eğrisini tekrar değerlendirmekte ve eşitsizliği açıklamak için ekonomik büyümenin yanında yeni göstergelere odaklanmaktadır. Bu çabalardan öne çıkanı, finansal gelişme ile gelir eşitsizliği arasında ters-U şeklinde bir ilişki olabileceği yönündeki tartışmalardır. Bu makale yükselen ekonomilerde finansal gelişmenin gelir eşitsizliği üzerindeki etkisini ampirik yöntemlerle inceleyerek literatürdeki tartışmalara katkı sağlamayı amaçlamaktadır. Tahmin sonuçları, ekonomik büyüme ile gelir eşitsizliği arasında ters-U hipotezini doğrularken, finansal gelişme ile gelir eşitsizliği arasında böyle bir ilişki desteklememektedir. Öte yandan, bulgular finansal gelişmenin gelir eşitsizliği üzerinde azaltıcı bir etkisi olduğunu işaret etmektedir. Araştırmanın sonunda, gelir eşitsizliği ile mücadelede bazı politik etkiler değerlendirilmektedir.

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Cite This Article

KOÇAK, E. (2021). Economic Growth, Financial Development, and Income Inequality: An Empirical Estimation. Bankacılar, Cilt: 32 - Sayı: 118, 48–64. https://ajindex.com/articles/415524

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