EVALUATION OF THE FACTORS AFFECTING INCOME DISTRIBUTION IN OECD COUNTRIES WITH PANEL DATA ANALYSIS

Abstract

The world economy received new impulses thanks to the acceleration of international trade and cooperation in the last decades and this process subsequently contributed to the growing research interest concerning the relative equality of the distribution of per capita income in various countries. Feeding into this, the issue of how rich-poor income inequality across the population shifts towards or away absolute zero has gained importance in relation to long term economic growth and equity. Thus, it is important to explore in-depth how or what the changes occurring in relation to the key aspects of income distribution would have on difference in income severity between the two groups in focus. The income inequality determinants in this paper are firstly investigated and then econometrically tested using 2001-2020 panel data for 25 OECD member countries. Due to cross-sectional dependence and cross-sectional heterogeneity present in the data, data is treated in the form of panel data. The series’ stationarity is tested using the Pesaran’s (2007) CIPS Panel Unit Root Test, which is classified amongst the second generation unit root tests. The relationship between the variables is also tested for a long run relationship in which case the Westerlund Panel Cointegration Test and the Estimation of Cointegration Coefficients Using the Panel AMG (Augmented Mean Group) method by Eberhardt and Bond are employed. The Dumitrescu Hurlin Panel Causality Test was used to assess the relationships, between the variables. The result of the study shows that a one percent increase in the consumer price index increases income inequality by 0.01%. Further, one unit increase in indirect tax, human development index political stability, and absence of violence/terrorism index decrease income inequality by 0.08%, 19.3%, and 0.04%, respectively. Hence, the result says that the concerned variables need to be considered while formulating policies for increasing income equality.

Keywords

• Income Inequality
• Gini Index
• Panel Data Analysis

OECD ÜLKELERİNDE GELİR DAĞILIMINI ETKİLEYEN FAKTÖRLERİN PANEL VERİ ANALİZİ İLE DEĞERLENDİRİLMESİ

Abstract

Son yıllarda küresel ticaretin ve uluslararası işbirliklerinin ivme kazanması, dünya ekonomisine yeni bir dinamik kazandırmış ve bu süreç, ülkeler arasındaki kişi başına düşen gelir düzeylerinin yakınsamasına yönelik ilginin artmasına zemin hazırlamıştır. Bu bağlamda, uzun vadede zengin ve yoksul kesimler arasındaki gelir dağılımının mutlak eşitlik seviyesine yakınsaması ya da ondan uzaklaşmasının incelenmesi, ekonomik kalkınma ve gelir adaleti açısından önemli bir araştırma konusu haline gelmiştir. Dolayısıyla, gelir dağılımını etkileyen temel faktörlerin, iki grup arasındaki gelir farklılıkları üzerindeki etkisinin kapsamlı bir biçimde analiz edilmesi gerekmektedir. Bu çalışmada, 25 OECD ülkesine ait 2001-2020 dönemine ilişkin veriler kullanılarak gelir adaletsizliğine etki eden faktörler öncelikle istatistiki, ardından ekonometrik yöntemlerle incelenmiştir. Verilerin yatay kesit bağımlılığı ve heterojen yapısı göz önüne alınarak panel veri analizi tercih edilmiştir. Serilerin durağanlığı, ikinci nesil birim kök testlerinden biri olan Pesaran (2007) CIPS Panel Birim Kök Testi ile değerlendirilmiştir. Panel eşbütünleşme ilişkisi ise Westerlund Panel Eşbütünleşme Testi ile incelenmiş, eşbütünleşme katsayılarının tahmini için Eberhardt ve Bond tarafından geliştirilen Panel AMG (Artırılmış Ortalama Grup) yöntemi kullanılmıştır. Değişkenler arasındaki nedensellik ilişkilerinin tespiti amacıyla Dumitrescu-Hurlin Panel Nedensellik Testi uygulanmıştır. Çalışma bulguları, tüketici fiyat endeksindeki artışın gelir eşitsizliğini %0,01 oranında artırdığını ortaya koymaktadır. Buna ek olarak, dolaylı vergiler, insani gelişim endeksi ve politik istikrar ile şiddet/terörizm yokluğu endeksindeki bir birimlik artışın sırasıyla %0,08, %19,3 ve %0,04 oranında gelir adaletsizliğini azalttığı tespit edilmiştir. Elde edilen bu sonuçlar, gelir dağılımını iyileştirme amacı güden politikaların oluşturulmasında, ilgili faktörlerin dikkate alınması gerektiğini göstermektedir.

Keywords

• Gelir Eşitsizliği
• Gini Endeksi
• Panel Veri Analizi

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