FİNANSAL KÜRESELLEŞME VE GELİR EŞİTSİZLİĞİ ARASINDAKİ İLİŞKİ: YÜKSELEN PİYASA EKONOMİLERİ ÖRNEĞİ

Year 2021, , 339 - 355, 23.05.2021

Orkun Çelik

https://doi.org/10.30794/pausbed.789689

Cited By: 2

Abstract

19 yükselen piyasa ekonomileri için finansal küreselleşme ve gelir eşitsizliği arasındaki nedensellik ilişkisini analiz etmekteyiz. Panel boostrap nedensellik analizinden yararlanmaktayız. Veri seti 1979-2012 dönemini kapsamaktadır. Sonuçlar, finansal küreselleşme ve gelir eşitsizliği arasında pozitif bir nedensellik ilişkisi olduğunu göstermektedir. Ayrıca, Şili, Çin, Kolombiya, Mısır, Hindistan, Endonezya, Pakistan ve Singapur’da finansal küreselleşmeden gelir eşitsizliğine doğru bir Granger nedensellik ilişkisi görülürken, Mısır ve İran’da ise gelir eşitsizliğinden finansal küreselleşmeye doğru bir Granger nedensellik bulunmaktadır. Ek olarak, Malezya, Filipinler ve Taylan’da ise çift yönlü Granger nedensellik vardır. Sonuçlar geleneksel anlayışla tutarlı değildir.

Keywords

Küreselleşme, Finansal Küreselleşme, Gelir Eşitsizliği, Sürdürülebilir Kalkınma

THE NEXUS BETWEEN FINANCIAL GLOBALIZATION AND INCOME INEQUALITY: THE CASE OF EMERGING MARKET ECONOMIES

Abstract

We analyze the causality nexus between financial globalization and income inequality for 19 Emerging Market Economies. We use the panel bootstrap causality analysis. The dataset covers the period 1979-2012. The results indicate that there is a positive causality nexus between financial globalization and income inequality. Also, they show that Granger causality running from financial globalization to income inequality is seen in many countries such as Chile, China, Colombia, Egypt, India, Indonesia, Pakistan, and Singapore while there is Granger causality running from income inequality to financial globalization in Egypt and Iran Furthermore, there is bidirectional Granger causality in Malaysia, Philippines, and Thailand. The results are not consistent with the conventional wisdom.

Keywords

Globalization, Financial Globalization, Income Inequality, Sustainable Development

References

• Acun, S. (2019). “OECD ülkelerinde gelir dağılımının belirleyenleri”, Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi, 7/2, 217-224.
• Agnello, L., Mallick, S.K. & Sousa, R.M. (2012). “Financial reforms and income inequality”, Economics Letters, 116/3, 583-587.
• Akadiri, S.S., Lasisi, T.T., Uzuner, G. & Akadiri, A.C. (2020). “Examining the causal impacts of tourism, globalization, economic growth and carbon emissions in tourism island territories: bootstrap panel Granger causality analysis”, Current Issues in Tourism, 23/4, 470-484.
• Akbakay, Z. & Barak, D. (2020). “Yükselen piyasalarda ekonomik küreselleşme ve gelir eşitsizliği ilişkisi”, Uluslararası Yönetim İktisat ve İşletme Dergisi, 16/1, 17-34.
• Alper, C.E. & Onis, Z. (2003). “Financial globalization, the democratic deficit, and recurrent crises in emerging markets: The Turkish experience in the aftermath of capital account liberalization”, Emerging Markets Finance and Trade, 39/3, 5-26.
• Arestis, P. & Basu, S. (2003). “Financial globalization: some conceptual problems”, Eastern Economic Journal, 29/2, 183-189.
• Asteriou, D., Dimelis, S. & Moudatsou, A. (2014). “Globalization and income inequality: A panel data econometric approach for the EU27 countries”, Economic Modelling, 36, 592-599.
• Atif, S.M., Srivastav, M., Sauytbekova, M. & Arachchige, U.K. (2012). “Globalization and income inequality: a panel data analysis of 68 countries”, ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft, Kiel und Hamburg.
• Bacchetta, M. & Jansen, M. (2011). “Making globalization socially sustainable”, World Trade Organization. Geneva, Switzerland.
• Baek, I., Shi, Q. (2016). “Impact of economic globalization on income inequality: Developed economies vs emerging economies”, Global Economy Journal, 16/1, 49-61.
• Balan, F., Torun, M. & Kilic, C. (2015). “Globalization and income inequality in G7: A bootstrap panel Granger causality analysis”, International Journal of Economics and Finance, 7/10, 192-203.
• Bergh, A. & Nilsson, T. (2010). “Do liberalization and globalization increase income inequality?”, European Journal of Political Economy, 26/4, 488-505.
• Breusch, T.S. & Pagan, A.R. (1980). “The lagrange multiplier test and its applications to model specification in econometrics”, The Review of Economic Studies, 47/1, 239-253.
• Broner, F. & Ventura, J. (2016). “Rethinking the effects of financial globalization”, The Quarterly Journal of Economics, 131/3, 1497-1542.
• Bukhari, M. & Munir, K. (2016). Impact of globalization on income inequality in selected Asian countries. Munich Personal RePEc Archive. MPRA Paper No. 74248. https://mpra.ub.uni-muenchen.de/74248/. (15.02.2020).
• Bumann, S. & Lensink, R. (2016). “Capital account liberalization and income inequality”, Journal of International Money and Finance, 61, 143-162.
• Cabral, R., García-Díaz, R. & Mollick, A.V. (2016). “Does globalization affect top income inequality?”, Journal of Policy Modeling, 38/5, 916-940.
• Çelik, S. & Basdas, U. (2010). “How does globalization affect income inequality? A panel data analysis”, International Advances in Economic Research, 16/4, 358-370.
• Chang, T. & Tsai, C.F. (2015). “Globalization and inflation nexus: Further evidence based on bootstrap panel causality”, Quality & Quantity, 49/2, 867-877.
• Chang, T., Cheng, S.C., Pan, G. & Wu, T.P. (2013). “Does globalization affect the insurance markets? Bootstrap panel Granger causality test”, Economic Modelling, 33, 254-260.
• Chu, H.P. (2012). “Oil consumption and output: What causes what? Bootstrap panel causality for 49 countries”, Energy Policy, 51, 907-915.
• Daisaka, H., Furusawa, T. & Yanagawa, N. (2014). “Globalization, financial development and income inequality”, Pacific Economic Review, 19/5, 612-633.
• Das, M. & Mohapatra, S. (2003). “Income inequality: The aftermath of stock market liberalization in emerging markets”, Journal of Empirical Finance, 10/1-2, 217-248.
• De Haan, J. & Sturm, J.E. (2017). “Finance and income inequality: A review and new evidence”, European Journal of Political Economy, 50, 171-195.
• Destek, M.A. (2018). “Dimensions of globalization and income inequality in transition economies: taking into account cross-sectional dependence”, Eastern Journal of European Studies, 9/2, 5-25.
• Dorn, F., Fuest, C. & Potrafke, N. (2018). Globalization and income inequality revisited. CESifo Working Paper No. 6859.
• Dreher, A. & Gaston, N. (2008). “Has globalization increased inequality?”, Review of International Economics, 16/3, 516-536.
• Dumitrescu, E.I., Hurlin, C. (2012). “Testing for Granger non-causality in heterogeneous panels”, Economic Modelling, 29/4, 1450-60.
• Elmawazini, K., Sharif, A., Manga, P. & Drucker, P. (2013). “Trade globalization, financial globalization and inequality within south-east Europe and CIS countries”, The Journal of Developing Areas, 47/2, 303-317.
• Furceri, D. & Loungani, P. (2018). “The distributional effects of capital account liberalization”, Journal of Development Economics, 130, 127-144.
• Furceri, D., Loungani, P. & Ostry, J.D. (2019). “The aggregate and distributional effects of financial globalization: Evidence from macro and sectoral data”, Journal of Money Credit and Banking, 51, 163-198.
• Goldberg, P.K. & Pavcnik, N. (2007). “Distributional effects of globalization in developing countries”, Journal of Economic Literature, 45/1, 39-82.
• Gygli, S., Haelg, F., Potrafke, N. & Sturm, J.E. (2019). “The KOF globalisation index–revisited”, The Review of International Organizations, 14/3, 543-574.
• Heshmati, A. (2003). The relationship between income inequality and globalization. United Nations University. 1-31.
• Iacoviello, M. (2008). “Household debt and income inequality, 1963–2003”, Journal of Money, Credit and Banking, 40/5, 929-965.
• Jaumotte, F., Lall, S. & Papageorgiou, C. (2013). “Rising income inequality: Technology, or trade and financial globalization?”, IMF Economic Review, 61/2, 271-309.
• Kai, H. & Hamori, S. (2009). “Globalization, financial depth and inequality in Sub-Saharan Africa”, Economics Bulletin, 29/3, 2025-2037.
• Kang-Kook, L. (2014). “Globalization, income inequality and poverty: Theory and empirics”, Social System Studies, 28, 109-134.
• Kar, M., Nazlıoğlu, Ş. & Ağır, H. (2011). “Financial development and economic growth nexus in the MENA countries: Bootstrap panel granger causality analysis”, Economic Modelling, 28/1-2, 685-693.
• Khan, H., Shehzad, C.T. & Ahmad, F. (2019). Temporal effects of financial globalization on income inequality. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3509061. (15.02.2020).
• Kónya, L. (2006). “Exports and growth: Granger causality analysis on OECD countries with a panel data approach”, Economic Modelling, 23/6, 978-992.
• Kose, A.M. & Prasad, E.S. (2010). Resilience of emerging market economies to economic and financial development in advanced economies. Economic and Financial Affairs Economic Paper 411.
• Kratou, H. & Goaied, M. (2016). “How can globalization affect income distribution? Evidence from developing countries”, The International Trade Journal, 30/2, 132-158.
• Kunieda, T., Okada, K. & Shibata, A. (2014). “Finance and inequality: How does globalization change their relationship?”, Macroeconomic Dynamics, 18/5, 1091-1128.
• Lee, J.E. (2006). “Inequality and globalization in Europe”, Journal of Policy Modeling, 28/7, 791-796.
• Lee, W.C., Cheong, T.S., Wu, Y. & Wu, J. (2019). “The impacts of financial development, urbanization, and globalization on income inequality: A regression-based decomposition approach”, Asian Economic Papers, 18/2, 126-141.
• Martin, P. & Rey, H. (2006). “Globalization and emerging markets: With or without crash?”, American Economic Review, 96/5, 1631-1651.
• Maskin, E. (2015). “Why haven't global markets reduced inequality in emerging economies?”, The World Bank Economic Review, 29, 48-52.
• Menyah, K., Nazlioglu, S. & Wolde-Rufael, Y. (2014). “Financial development, trade openness and economic growth in African countries: New insights from a panel causality approach”, Economic Modelling, 37, 386-394.
• Meschi, E.F. & Vivarelli, M. (2007). Globalization and income inequality. IZA Discussion Paper No. 2958.
• Mishkin, F.S. (2007). “Is financial globalization beneficial?”, Journal of Money, Credit and Banking, 39/2‐3, 259-294.
• Mishkin, F.S. (2009). “Why we shouldn't turn our backs on financial globalization”, IMF Economic Review, 56/1, 139-170.
• Ozcan, B. & Ozturk, I. (2019). “Renewable energy consumption-economic growth nexus in emerging countries: A bootstrap panel causality test”, Renewable and Sustainable Energy Reviews, 104, 30-37.
• Özcan, G. & Özmen, İ. (2018). “Küreselleşme yükselen ekonomilerde gelir dağılımını etkiler mi?”, Kahramanmaraş Sütçü İmam Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 8/2, 35-52.
• Pesaran, M.H. (2004). General diagnostic tests for cross section dependence in panels. IZA Discussion Paper No. 1240.
• Pesaran, M.H. & Yamagata, T. (2008). “Testing slope homogeneity in large panels”, Journal of Econometrics, 142/1, 50-93.
• Pesaran, M.H., Ullah, A. & Yamagata, T. (2008). “A bias‐adjusted LM test of error cross‐section independence”, The Econometrics Journal, 11/1, 105-127.
• Pietrobelli, C. & Zamagni, S. (2000). “The emerging economies in the global financial market: Some concluding remarks”, Financial globalization and the emerging economies, (Eds: J.A. Ocampo, S. Zamagni, R. Ffrench-Davis, C. Pietrobelli), United Nations and International Jacques Maritain Institute. Santiago, Chile.
• Rajan, R.G. (2010). Fault lines: How hidden fractures still threaten the world economy. Princeton University Press, US.
• Rodrik, D. & Subramanian, A. (2009). “Why did financial globalization disappoint?”, IMF Staff Papers, 56/1, 112-138.
• Schmukler, S.L. (2004). “Financial globalization: Gain and pain for developing countries”, Federal Reserve Bank Atlanta Economic Review, 89/2, 39-66.
• Solt, F. (2019). Measuring income inequality across countries and over time: The standardized world income inequality database. SWIID Version 8.2, November 2019.
• Swamy, P.A. (1970). “Efficient inference in a random coefficient regression model”, Econometrica, 311-323.
• Tsunekawa, K. (2019). "Globalization and the emerging state: Past advance and future challenges”, Emerging states and economies, (Eds: T. Shiraishi, T. Sonobe), Springer, Singapore.
• Tunalı, H. & Çetinkaya, H. (2019). “Küreselleşmenin gelir eşitsizliği üzerindeki etkisi: G7 ülkeleri panel veri analizi”, İktisadi İdari ve Siyasal Araştırmalar Dergisi, 4/10, 224-237.
• Wolde-Rufael, Y. (2014). “Electricity consumption and economic growth in transition countries: A revisit using bootstrap panel Granger causality analysis”, Energy Economics, 44, 325-330.
• Zellner, A. (1962). “An efficient method of estimating seemingly unrelated regressions and tests for aggregation bias”, Journal of the American Statistical Association, 57/298, 348-368.