WHAT CAUSES INCOME INEQUALITY: ECONOMIC GROWTH OR FINANCIAL DEVELOPMENT?
The paper investigates the linkage between growth, finance and inequality in the light of inverted-U hypothesis in the European Union member countries in theperiod 1995-2018. The findings of the multiple equations analysis indicate that economic growth and financial development act together, implyin...
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| Format: | Article |
| Language: | English |
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Ankara University
2021-03-01
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| Series: | Ankara Avrupa Çalışmaları Dergisi |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/en/download/article-file/1599265 |
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| author | Merter Akıncı Gönül Yüce Akıncı Ömer Yılmaz |
| author_facet | Merter Akıncı Gönül Yüce Akıncı Ömer Yılmaz |
| author_sort | Merter Akıncı |
| collection | DOAJ |
| description | The paper investigates the linkage between growth, finance and inequality in the light of inverted-U hypothesis in the European Union member countries in theperiod 1995-2018. The findings of the multiple equations analysis indicate that economic growth and financial development act together, implying that growthboosts finance and vice versa. In addition, while the paper does not support the Kuznets hypothesis, the findings confirm the Greenwood-Jovanovic hypothesis,suggesting that the linkage between financial development and inequality is quadratic. That is to say, in the first phase of development, development of thefinancial markets is related to income inequality positively, however beyond the threshold level of finance, the linkage between finance and inequality becomesnegative. |
| format | Article |
| id | doaj-art-2dc14b8278274d9b9f04b46c808b6852 |
| institution | Kabale University |
| issn | 1303-2518 |
| language | English |
| publishDate | 2021-03-01 |
| publisher | Ankara University |
| record_format | Article |
| series | Ankara Avrupa Çalışmaları Dergisi |
| spelling | doaj-art-2dc14b8278274d9b9f04b46c808b68522025-02-03T06:55:05ZengAnkara UniversityAnkara Avrupa Çalışmaları Dergisi1303-25182021-03-0119232736410.32450/aacd.88608545WHAT CAUSES INCOME INEQUALITY: ECONOMIC GROWTH OR FINANCIAL DEVELOPMENT?Merter Akıncı0https://orcid.org/0000-0002-5449-0207Gönül Yüce Akıncı1https://orcid.org/0000-0002-5900-7114Ömer Yılmaz2https://orcid.org/0000-0002-2951-8749ORDU ÜNİVERSİTESİ, ÜNYE İKTİSADİ VE İDARİ BİLİMLER FAKÜLTESİ, İKTİSAT BÖLÜMÜORDU ÜNİVERSİTESİ, ÜNYE İKTİSADİ VE İDARİ BİLİMLER FAKÜLTESİ, İŞLETME BÖLÜMÜATATÜRK ÜNİVERSİTESİ, İKTİSADİ VE İDARİ BİLİMLER FAKÜLTESİ, EKONOMETRİ BÖLÜMÜThe paper investigates the linkage between growth, finance and inequality in the light of inverted-U hypothesis in the European Union member countries in theperiod 1995-2018. The findings of the multiple equations analysis indicate that economic growth and financial development act together, implying that growthboosts finance and vice versa. In addition, while the paper does not support the Kuznets hypothesis, the findings confirm the Greenwood-Jovanovic hypothesis,suggesting that the linkage between financial development and inequality is quadratic. That is to say, in the first phase of development, development of thefinancial markets is related to income inequality positively, however beyond the threshold level of finance, the linkage between finance and inequality becomesnegative.https://dergipark.org.tr/en/download/article-file/1599265economic growthfinancial developmentincome inequalityinverted-u hypothesissimultaneous equation systemekonomik büyümefinansal kalkınmagelir eşitsizliğiters-u hipotezieşanlı denklem sistemi |
| spellingShingle | Merter Akıncı Gönül Yüce Akıncı Ömer Yılmaz WHAT CAUSES INCOME INEQUALITY: ECONOMIC GROWTH OR FINANCIAL DEVELOPMENT? Ankara Avrupa Çalışmaları Dergisi economic growth financial development income inequality inverted-u hypothesis simultaneous equation system ekonomik büyüme finansal kalkınma gelir eşitsizliği ters-u hipotezi eşanlı denklem sistemi |
| title | WHAT CAUSES INCOME INEQUALITY: ECONOMIC GROWTH OR FINANCIAL DEVELOPMENT? |
| title_full | WHAT CAUSES INCOME INEQUALITY: ECONOMIC GROWTH OR FINANCIAL DEVELOPMENT? |
| title_fullStr | WHAT CAUSES INCOME INEQUALITY: ECONOMIC GROWTH OR FINANCIAL DEVELOPMENT? |
| title_full_unstemmed | WHAT CAUSES INCOME INEQUALITY: ECONOMIC GROWTH OR FINANCIAL DEVELOPMENT? |
| title_short | WHAT CAUSES INCOME INEQUALITY: ECONOMIC GROWTH OR FINANCIAL DEVELOPMENT? |
| title_sort | what causes income inequality economic growth or financial development |
| topic | economic growth financial development income inequality inverted-u hypothesis simultaneous equation system ekonomik büyüme finansal kalkınma gelir eşitsizliği ters-u hipotezi eşanlı denklem sistemi |
| url | https://dergipark.org.tr/en/download/article-file/1599265 |
| work_keys_str_mv | AT merterakıncı whatcausesincomeinequalityeconomicgrowthorfinancialdevelopment AT gonulyuceakıncı whatcausesincomeinequalityeconomicgrowthorfinancialdevelopment AT omeryılmaz whatcausesincomeinequalityeconomicgrowthorfinancialdevelopment |