The Impact of Financial Development, Economic Growth and Quality of Governance on Income Distribution in BRICS-T Countries: Panel Data Analysis for the Period 2002-2021

Abstract

Income inequality is one of the most critical challenges facing modern economies, profoundly affecting not only economic performance but also social justice and peace. This study examines the relationship between income inequality and financial development, economic growth and governance quality in BRICS-T countries (Brazil, Russia, India, China, South Africa and Turkey). By analyzing data for the period 2002-2021, the study evaluates the impact of governance quality indicators such as government effectiveness, regulatory quality and rule of law on income distribution. The validity of the Financial Kuznets Curve hypothesis is also tested. The FGLS estimator is used in the econometric analysis, while the PCSE estimator is applied as a control method. The findings reveal that there is no significant relationship between financial development and income inequality and the Financial Kuznets Curve hypothesis is not valid. On the other hand, economic growth is found to reduce income inequality, while regulatory quality and rule of law have an increasing effect on income inequality. This study makes an important contribution to understanding the effects of economic and institutional policies on income distribution in BRICS-T countries. The findings of the study emphasize that policy reforms to improve the quality of governance may be at odds with the goals of reducing income inequality and that a careful balance needs to be struck in policy design in this area.

Keywords

• Financial Development
• Income Distribution
• Quality of Governance
• Rule of Law
• Economic Growth
• Panel Data

BRICS-T Ülkelerinde Finansal Gelişim, Ekonomik Büyüme ve Yönetişim Kalitesinin Gelir Dağılımına Etkisi: 2002-2021 Dönemi Panel Veri Analizi

Abstract

Gelir eşitsizliği, modern ekonomilerin karşı karşıya olduğu en kritik sorunlardan biridir ve sadece ekonomik performansı değil, aynı zamanda toplumsal adalet ve barışı da derinden etkilemektedir. Bu çalışma, BRICS-T ülkelerinde (Brezilya, Rusya, Hindistan, Çin, Güney Afrika ve Türkiye) gelir eşitsizliği ile finansal gelişim, ekonomik büyüme ve yönetişim kalitesi arasındaki ilişkiyi incelemektedir. Çalışma, 2002-2021 dönemine ait verileri analiz ederek hükümet etkinliği, düzenleyici kalite ve hukukun üstünlüğü gibi yönetişim kalitesi göstergelerinin gelir dağılımı üzerindeki etkisini değerlendirmektedir. Ayrıca, Finansal Kuznets Eğrisi hipotezinin geçerliliği de test edilmiştir. Ekonometrik analizde FGLS tahmincisi kullanılırken, PCSE tahmincisi kontrol yöntemi olarak uygulanmıştır. Bulgular, finansal gelişim ile gelir eşitsizliği arasında anlamlı bir ilişkinin bulunmadığını ve Finansal Kuznets Eğrisi hipotezinin geçerli olmadığını ortaya koymaktadır. Öte yandan, ekonomik büyümenin gelir eşitsizliğini azalttığı, düzenleyici kalite ve hukukun üstünlüğünün ise gelir eşitsizliği üzerinde artırıcı bir etkisi olduğu tespit edilmiştir. Bu çalışma, BRICS-T ülkelerinde ekonomik ve kurumsal politikaların gelir dağılımı üzerindeki etkilerini anlamak için önemli bir katkı sağlamaktadır. Çalışmanın bulguları, yönetişim kalitesini artırmaya yönelik politika reformlarının gelir eşitsizliğini azaltma hedefleriyle çelişkili olabileceğini ve bu alandaki politika tasarımında dikkatli bir denge kurulması gerektiğini vurgulamaktadır.

Keywords

• Finansal Gelişim
• Gelir Dağılımı
• Yönetişim Kalitesi
• Hukukun Üstünlüğü
• Ekonomik Büyüme
• Panel Data

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