Dynamics Of Income Distribution in the Five Fragile Countries: An Empirical Application
One of the important topics of economic theory is the discussion of income distribution inequality. The role of the state and social institutions in improving income distribution inequalities in almost every country, whether developed or developing, is undeniable. Therefore, determining the dynamics...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Istanbul University Press
2024-12-01
|
| Series: | Sosyal Siyaset Konferansları Dergisi |
| Subjects: | |
| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/576146F213DB4CAA9832967538C8B915 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | One of the important topics of economic theory is the discussion of income distribution inequality. The role of the state and social institutions in improving income distribution inequalities in almost every country, whether developed or developing, is undeniable. Therefore, determining the dynamics affecting income distribution is important in terms of correctly determining the economic policies to be implemented in the countries. In this study, the dynamics of income distribution in the countries called the Fragile Five (Brazil, India, Indonesia, South Africa and Türkiye), which have been frequently examined recently, will be determined using the CCE estimator between 1994 and 2017 with panel data analysis. The GINI Coefficient was used as the dependent variable in the model to represent the income distribution. To make a specific policy recommendation as a result of the analysis, the independent variables were divided into two as monetary policy variables (policy rate, money supply) and fiscal policy variables (public expenditures, tax revenues). In addition, according to the literature, per capita national income growth, inflation rate, trade openness, financial openness, financial development and human capital data were included in the model as control variables. It is thought that this study will contribute to the literature since there is no such analysis in terms of monetary and fiscal policies in the Fragile Five Countries. According to the empirical results, it is concluded that increases in the broad money supply and human capital in the so-called Fragile Five countries increase income inequality, while increases in financial development reduce income inequality. |
|---|---|
| ISSN: | 1304-0103 2548-0405 |