Research Article

The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis

Volume: 9 Number: 4 December 31, 2024
TR EN

The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis

Abstract

Economic development and income distribution are central issues in economics, with their relationship being critical for sustainable development. Imbalances in income distribution can slow economic growth and reduce societal welfare. Thus, development policies should prioritize not just growth but also equitable income distribution. A balanced income distribution enhances social acceptance and ensures the sustainability of development. This study examines the relationship between economic development and income distribution in MIST countries (Mexico, Indonesia, South Korea, and Turkey) from 1990 to 2022, as classified by economist Jim O’Neill. Using a panel ARDL model, the findings show that economic development reduces income inequality. However, industrialization, a marker of technological progress, tends to increase inequality. These insights have significant policy implications. To mitigate income inequality, MIST countries should emphasize the three pillars of economic development: education, health, and growth. Policymakers must reassess industrialization strategies, promoting renewable energy while addressing inequality. Subsidies to non-renewable sectors and improved vocational training for unskilled labor can reduce the dual economic structure created by technological advancements. By implementing vocational programs and orientation initiatives, governments can limit the adverse effects of industrialization on unskilled workers, ensuring more equitable growth.

Keywords

References

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Details

Primary Language

English

Subjects

Panel Data Analysis

Journal Section

Research Article

Publication Date

December 31, 2024

Submission Date

November 25, 2024

Acceptance Date

December 29, 2024

Published in Issue

Year 2024 Volume: 9 Number: 4

APA
Tarakcıoğlu Altınay, A., Tufaner, M. B., & Sözen, İ. (2024). The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis. Ekonomi Politika Ve Finans Araştırmaları Dergisi, 9(4), 729-742. https://doi.org/10.30784/epfad.1591103
AMA
1.Tarakcıoğlu Altınay A, Tufaner MB, Sözen İ. The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis. EPF Journal. 2024;9(4):729-742. doi:10.30784/epfad.1591103
Chicago
Tarakcıoğlu Altınay, Ayşenur, Mustafa Batuhan Tufaner, and İlyas Sözen. 2024. “The Linkage Between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis”. Ekonomi Politika Ve Finans Araştırmaları Dergisi 9 (4): 729-42. https://doi.org/10.30784/epfad.1591103.
EndNote
Tarakcıoğlu Altınay A, Tufaner MB, Sözen İ (December 1, 2024) The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis. Ekonomi Politika ve Finans Araştırmaları Dergisi 9 4 729–742.
IEEE
[1]A. Tarakcıoğlu Altınay, M. B. Tufaner, and İ. Sözen, “The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis”, EPF Journal, vol. 9, no. 4, pp. 729–742, Dec. 2024, doi: 10.30784/epfad.1591103.
ISNAD
Tarakcıoğlu Altınay, Ayşenur - Tufaner, Mustafa Batuhan - Sözen, İlyas. “The Linkage Between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis”. Ekonomi Politika ve Finans Araştırmaları Dergisi 9/4 (December 1, 2024): 729-742. https://doi.org/10.30784/epfad.1591103.
JAMA
1.Tarakcıoğlu Altınay A, Tufaner MB, Sözen İ. The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis. EPF Journal. 2024;9:729–742.
MLA
Tarakcıoğlu Altınay, Ayşenur, et al. “The Linkage Between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis”. Ekonomi Politika Ve Finans Araştırmaları Dergisi, vol. 9, no. 4, Dec. 2024, pp. 729-42, doi:10.30784/epfad.1591103.
Vancouver
1.Ayşenur Tarakcıoğlu Altınay, Mustafa Batuhan Tufaner, İlyas Sözen. The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis. EPF Journal. 2024 Dec. 1;9(4):729-42. doi:10.30784/epfad.1591103

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