IDEAS home Printed from https://ideas.repec.org/a/acc/malfin/v40y2025i124p60-80.html

Assessing the Impact of Income Redistribution on Growth: Evidence From the E6 Countries

Author

Listed:
  • Emre Gökçeli

    (Kütahya Dumlupınar University)

Abstract

This study examines the effect of income distribution on economic growth across the E6 countries, namely China, Türkiye, Mexico, Brazil, Russia, and India, from 1988 to 2021, employing the Panel Corrected Standard Errors (PCSE) method. The findings, based on the PCSE estimations and preliminary tests including cross-sectional dependence, unit root tests, and the Westerlund cointegration test, can be summarized as follows: i) Models exhibit cross-sectional dependence (CSD) according to various CD tests. ii) There is a long-term relationship among the variables according to the Westerlund cointegration test. iii) The growth-enhancing effect of absolute redistribution on the economic growth rate has been observed. iv) The growth-promoting effect of absolute redistribution is also confirmed through the use of the relative redistribution variable. v) Based on these findings, the study offers policy recommendations and outlines directions for future research on the topic.

Suggested Citation

  • Emre Gökçeli, 2025. "Assessing the Impact of Income Redistribution on Growth: Evidence From the E6 Countries," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 40(124), pages 60-80, October.
    • Handle: RePEc:acc:malfin:v:40:y:2025:i:124:p:60-80
    DOI: https://doi.org/10.33203/mfy.1689247
    as

    Download full text from publisher

    File URL: https://dergipark.org.tr/tr/download/article-file/4828186
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.33203/mfy.1689247?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daniel H. Vedia-Jerez & Coro Chasco, 2016. "Long-run determinants of economic growth in South America," Journal of Applied Economics, Universidad del CEMA, vol. 19, pages 169-192, May.
    2. Shubin Wang & Junsheng Ha & Hakan Kalkavan & Serhat Yüksel & Hasan Dinçer, 2020. "IT2-Based Hybrid Approach for Sustainable Economic Equality: A Case of E7 Economies," SAGE Open, , vol. 10(2), pages 21582440209, May.
    3. Yaya Keho, 2017. "The impact of trade openness on economic growth: The case of Cote d’Ivoire," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1332820-133, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peverga, Kator., 2024. "Trade Openness and Economic Growth in Nigeria: An Autoregressive Distributed Lagged (ARDL) Model Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 248-261, April.
    2. Mariem Bouattour & Salem Kanoun & Kamel Helali, 2026. "Non-linear impact of trade openness on Arab Maghreb Union economic growth: Empirical evidence from the PSTAR approach," Journal of Evolutionary Economics, Springer, vol. 36(1), pages 1-35, April.
    3. Kong, Qunxi & Peng, Dan & Ni, Yehui & Jiang, Xinyue & Wang, Ziqi, 2021. "Trade openness and economic growth quality of China: Empirical analysis using ARDL model," Finance Research Letters, Elsevier, vol. 38(C).
    4. Sri Juli Asdiyanti Samuda, 2023. "How Global Value Chains Affect Economic Output and Unemployment: An Empirical Evidence from ASEAN Countries," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(3), pages 513-538, September.
    5. Md. Saiful Islam & Saleh Saud Alsaif & Talal Alsaif, 2022. "Trade Openness, Government Consumption, and Economic Growth Nexus in Saudi Arabia: ARDL Cointegration Approach," SAGE Open, , vol. 12(2), pages 21582440221, May.
    6. Gachoki Emilio Munene, 2023. "Foreign Direct Investment, Trade Openness and Economic Growth in Kenya: Empirical Analysis Using ARDL Approach," International Journal of Science and Business, IJSAB International, vol. 28(1), pages 115-126.
    7. Michel Krah & Michael Kouadio & Fabrice Anzara, 2026. "Public debt and economic growth in WAEMU countries: evidence on the moderating effect of governance," SN Business & Economics, Springer, vol. 6(3), pages 1-22, March.
    8. Yakubu, Ibrahim Nandom, 2022. "Exploring the Drivers of Economic Growth in Sub-Saharan Africa: The Interactive Effect of Globalization and Financial Development," MPRA Paper 115230, University Library of Munich, Germany.
    9. Jonathan E. Ogbuabor & Anthony Orji & Charles O. Manasseh & Onyinye I. Anthony-Orji, 2020. "Institutional Quality and Growth in West Africa: What Happened after the Great Recession?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(4), pages 343-361, November.
    10. Lukman A. Olorogun, 2024. "Modelling Financial Development in the Private Sector, FDI, and Sustainable Economic Growth in sub-Saharan Africa: ARDL Bound Test-FMOLS, DOLS Robust Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8416-8434, June.
    11. Godwin Appiah-Kubi & Jeneba Joy Tucker & Simplice A. Asongu & Gerald Guan Gan GOH & Bright Akwasi Gyamfi, 2026. "Exploring the role of microfinance institutions in promoting financial sustainability and alleviating poverty in Ghana," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-31, December.
    12. Chang, Chiu-Lan & Fang, Ming, 2022. "Renewable energy-led growth hypothesis: New insights from BRICS and N-11 economies," Renewable Energy, Elsevier, vol. 188(C), pages 788-800.
    13. Philipp Heimberger, 2022. "Does economic globalisation promote economic growth? A meta‐analysis," The World Economy, Wiley Blackwell, vol. 45(6), pages 1690-1712, June.
    14. Bucevska Vesna, 2022. "Impact of Remittances on Economic Growth: Empirical Evidence from South-East European Countries," South East European Journal of Economics and Business, Sciendo, vol. 17(1), pages 79-94, June.
    15. William MESIET, 2023. "The nexus of foreign trade and economic growth in Tanzania. Examining the influence of COVID-19 pandemic. Evidence from vector error correction model," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(636), A), pages 273-296, Autumn.
    16. Ofori, Isaac K. & Gbolonyo, Emmanuel Y. & Ojong, Nathanael, 2024. "Heterogeneous Effects of Frontier Technology Readiness on Economic Growth in Africa," MPRA Paper 121247, University Library of Munich, Germany.
    17. Ammara Hussain & Ammar Oad & Munir Ahmad & Muhammad Irfan & Farhan Saqib, 2021. "Do Financial Development and Economic Openness Matter for Economic Progress in an Emerging Country? Seeking a Sustainable Development Path," JRFM, MDPI, vol. 14(6), pages 1-18, May.
    18. Azmat Gani, 2024. "Oman's trade achievements with Singapore given the Gulf–Singapore Free Trade Agreement," The World Economy, Wiley Blackwell, vol. 47(4), pages 1717-1740, April.
    19. Zainab Fatima & Faisal Nadeem Shah & Bilal Bashir & Muhammad Shazeb, 2022. "Impact of Energy Consumption and Trade on CO2 Emission in Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 4(1), pages 99-105.
    20. Yakubu, Ibrahim Nandom & Bunyaminu, Alhassan, 2021. "Financial Inclusion and Economic Growth in West Africa: The Moderating Effect of Financial Openness," MPRA Paper 115183, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:acc:malfin:v:40:y:2025:i:124:p:60-80. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Süleyman Kale (email available below). General contact details of provider: https://dergipark.org.tr/en/pub/mfy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.