Is Kuznets’ Inverted-U Hypothesis Valid for Turkey?: ARDL Bounds Testing Approach

Öz

Kuznets (1955) stated that in the early stages of a society's economic development, income inequality would increase with economic growth, and in the later stages of economic growth, income inequality would decrease. The aim of this study is to analyze whether Kuznets (1955) hypothesis was valid for the Turkish economy with the help of ARDL boundary test approach using data from 1987-2019 period. As a result of the analysis, it was found that there is a negative relationship between economic growth and income inequality. These results indicate that Kuznets' inverted-U hypothesis is not valid in Turkey, but rather that the relationship between economic growth and income inequality is similar to the U-shape.

Anahtar Kelimeler

• Income Inequality
• Economic Growth
• Kuznets Curve
• ARDL Boundary Test.

IS KUZNETS’ INVERTED-U HYPOTHESIS VALID FOR TURKEY?: ARDL BOUNDS TESTING APPROACH

Öz

Kuznets (1955) stated that in the early stages of a society's economic development, income inequality would increase with economic growth, and in the later stages of economic growth, income inequality would decrease. The aim of this study is to analyze whether Kuznets (1955) hypothesis was valid for the Turkish economy with the help of ARDL boundary test approach using data from 1987-2019 period. As a result of the analysis, it was found that there is a negative relationship between economic growth and income inequality. These results indicate that Kuznets' inverted-U hypothesis is not valid in Turkey, but rather that the relationship between economic growth and income inequality is similar to the U-shape.

Anahtar Kelimeler

• Income Inequality
• Economic Growth
• Kuznets Curve
• ARDL Boundary Test.

Kaynakça

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