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The Relationship between Economic Growth and Income Distribution in Turkey and the Turkish Republics of Central Asia and Caucasia: Dynamic Panel Data Analysis with Structural Breaks

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  • Mehmet Mercan
  • Ozlem Azer

Abstract

In this study, the effect of economic growth on income distribution was tested using data from Central Asian and Caucasian countries’ economies (Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan) and Turkish economy over the period of 1995 to 2009. New generation panel data methods, which consider cross-section dependence and structural breaks among countries, were used for the analysis. The results indicate that there exists co-integration among the series. We found that that the economic growth had a negative effect on the income distributions across the countries. In particular, the results show that the economic growth improved the income distribution in Turkey and Azerbaijan. Copyright Eurasia Business and Economics Society 2013

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  • Mehmet Mercan & Ozlem Azer, 2013. "The Relationship between Economic Growth and Income Distribution in Turkey and the Turkish Republics of Central Asia and Caucasia: Dynamic Panel Data Analysis with Structural Breaks," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 3(2), pages 165-182, December.
    • Handle: RePEc:spr:eurase:v:3:y:2013:i:2:p:165-182
    DOI: 10.14208/eer.2013.03.02.004
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    2. Xuan Vinh Vo & Huu Huan Nguyen & Khanh Duy Pham, 2016. "Financial structure and economic growth: the case of Vietnam," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 141-154, August.
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    More about this item

    Keywords

    Income Distribution; Gini Coefficient; Transition Countries; Panel Data Analysis with Structural Breaks; C33; E24; O15;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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