The Impact of Institutional Quality on Income Distribution: An Empirical Analysis for Developed and Developing Countries

Abstract

The objective of this study is to investigate the impact of institutional quality on income distribution among developed and developing countries. For this purpose, the Gini coefficient is used as the indicator of income distribution and the institutional quality index which was formed with the help of the International Country Risk Guide, is used as the indicator of institutional structure in models. The annual data covers 1988-2014 period that is used and recently developed panel data estimators such as CCEMG and System GMM are employed in this study. The findings obtained in the empirical analysis section can be listed as follows: i) An increase in institutional quality affects the Gini coefficient negatively in developed countries while affects positively in developing countries. ii) An increase in the financial development index affects the Gini coefficient positively in developed countries while affects negatively in developing countries.  iii) An increase in real income per capita affects the Gini coefficient negatively in both developed and developing countries.

Keywords

• Gini Coefficient,Institutional Quality,Developed Countries,Developing Countries

Kurumsal Kalitenin Gelir Dağılımı Üzerindeki Etkisi: Gelişmiş ve Gelişmekte Olan Ülkeler için Ampirik Bir Analiz

Abstract

Bu çalışmanın amacı kurumsal kalitenin gelir dağılımı üzerindeki etkisini gelişmiş ve gelişmekte olan ülkeler için araştırmaktır. Bu amaç doğrultusunda kurulan modellerde, gelir dağılımı göstergesi olarak Gini katsayısı, kurumsal yapı göstergesi olarak ise Uluslararası Ülke Risk Rehberi’nden yararlanılarak oluşturulan kurumsal kalite indeksi kullanılmıştır. 1988-2014 dönemini kapsayan yıllık verilerin kullanıldığı bu çalışmada, panel veri analizi tercih edilmiş olup, CCEMG ve Sistem GMM gibi yeni geliştirilen katsayı tahmincileri kullanılmıştır. Çalışmanın ampirik analiz kısmında elde edilen bulgular şöyle sıralanabilir: i) Kurumsal kalitedeki bir artış gelişmiş ülkelerde Gini katsayısını negatif etkilemekteyken, gelişmekte olan ülkelerde pozitif etkilemektedir. ii) Finansal gelişmişlik indeksindeki bir artış gelişmiş ülkelerde Gini katsayısını pozitif etkilemekteyken, gelişmekte olan ülkelerde negatif etkilemektedir. iii) Reel kişi başına gelirdeki bir artış hem gelişmiş hem de gelişmekte olan ülkelerde Gini katsayısını negatif etkilemektedir.

Keywords

• Gini Katsayısı,Kurumsal Kalite,Gelişmiş Ülkeler,Gelişmekte Olan Ülkeler

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