ARE ECONOMIC FREEDOMS AN IMPORTANT FACTOR AFFECTING INCOME INEQUALITY? AN EMPIRICAL APPLICATION ON TURKISH ECONOMY

Abstract

The aim of the study is to examine the relationship between economic freedom and income inequality in Turkey for the period 1995-2021. For this purpose, ARDL and Granger causality tests were applied. As a result of the analysis, there is a cointegration relationship between economic freedom index, GDP per capita, inflation, trade openness and income inequality. According to the findings, while the economic freedom index is statistically insignificant in the long run, other variables are significant. Moreover, economic freedom and trade openness have a negative effect on income inequality, while GDP per capita and inflation have a positive effect on income inequality. According to the Granger causality result, there is a unidirectional causality relationship from economic freedom to income inequality. This suggests that economic freedoms in Turkey do not have a significant direct impact on income inequality and that the impact of economic freedoms on income distribution may be limited, at least in this period.

Keywords

• Economic Freedoms
• Income Inequality
• Türkiye
• ARDL

Ekonomik Özgürlükler Gelir Eşitsizliğini Etkileyen Önemli Bir Faktör mü? Türkiye Ekonomisi Üzerine Ampirik Bir Uygulama

Abstract

Çalışmanın amacı, Türkiye'de ekonomik özgürlük ve gelir eşitsizliği arasındaki ilişkiyi 1995-2021 dönemi için incelemektir. Bu amaçla ARDL ve Granger nedensellik testleri uygulanmıştır. Analiz sonucunda ekonomik özgürlük endeksi, kişi başına düşen GSYH, enflasyon, ticari açıklık ve gelir eşitsizliği arasında eşbütünleşme ilişkisi tespit edilmiştir. Elde edilen bulgulara göre, ekonomik özgürlük endeksi uzun dönemde istatistiksel olarak anlamsız iken, diğer değişkenler anlamlıdır. Ayrıca, ekonomik özgürlük ve ticari açıklık gelir eşitsizliği üzerinde negatif bir etkiye sahipken, kişi başına düşen GSYİH ve enflasyon gelir eşitsizliği üzerinde pozitif bir etkiye sahiptir. Granger nedensellik sonucuna göre, ekonomik özgürlükten gelir eşitsizliğine doğru tek yönlü bir nedensellik ilişkisi vardır. Bu durum, Türkiye'de ekonomik özgürlüklerin gelir eşitsizliği üzerinde önemli bir doğrudan etkiye sahip olmadığını ve ekonomik özgürlüklerin gelir dağılımı üzerindeki etkisinin en azından bu dönemde sınırlı olabileceğini göstermektedir. Translated with DeepL.com (free version)

Keywords

• Ekonomik Özgürlük
• Gelir Eşitsizliği
• Türkiye
• ARDL

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