TY - JOUR TT - THE RELATIONSHIP BETWEEN INCOME DISTRIBUTION AND DEVELOPMENT: THE CASE OF TURKEY AU - Taban, Sami AU - Şengür, Mehmet PY - 2017 DA - April JF - Journal of Life Economics JO - JLECON PB - Holistence Publications WT - DergiPark SN - 2148-4139 SP - 9 EP - 16 VL - 4 IS - 2 KW - Income distribution KW - economic development KW - income inequality KW - economic growth KW - Turkey N2 - This study aims to determine whether income inequality in Turkey is an obstacle in economicdevelopment or not. For this purpose, the gini coefficient are used as a measure income inequality andreal GDP is used as an economic growth indicator between the years of 1990-2015. Johansen cointegrationmethod is utilized in the analysis of the study. Co-integration analysis has shown a longtermrelationship between the gini coefficient and economic growth. In order to determine thedirection of causality, the error correction model is applied. The findings indicate that the direction ofcausality runs from economic growth to gini coefficient. This result shows that economic growth is animportant factor in the reduction of income inequality. Empirical result reveals also that the reductionof income inequality through economic growth is the crucial factor for Turkey’s economicdevelopment. CR - AHITUV, A. and MOAV, O., 2003, Fertility clubs and economic growth. In Eicher, T. S. & Turnovsky, S. J. (Eds.), Inequality and Growth: Theory and Policy Implications, 61-87. Cambridge, London: MIT Press. CR - ALESINA, A. and PEROTTI, R., 1996, Income Distribution, Political Instability, and Investment, European Economic Review, 40(6), 1203-1228. CR - ALESINA, A. and Rodrik, D., 1994, Distributive Politics and Economic Growth, Quarterly Journal of Economics, 109(2), 465-490. CR - BARRO, R.J. and SALAI-MARTIN X., 1997, Technological Diffusion, Convergence, and Growth, Journal of Economic Growth, 2(1), 1-26. CR - CASTELLO, A. and DOMENECH, R., 2002, Human Capital Inequality and Economic Growth: Some New Evidence, Economic Journal, 112(478), 187-200. CR - CLARKE, G. R. G., 1995, More Evidence on Income Distribution and Growth, Journal of Development Economics, 47(2), 403-427. CR - COLL, J. A. C., 2014, Inequality and Growth in the Context of the Mexian Economy: Does Inequality Matter for Growth, ECINEQ Working Paper Series, No. 2014-331. CR - DAVIS, L. S., 2007, Explaining the Evidence on Inequality and Growth: Informality and Redistribution, The B.E. Journal of Macroeconomics, 7(1), 1-35. CR - DUMLU, U., and Aydın, Ö., 2008, Ekonometrik Modellerle Türkiye İçin 2006 Yılı Gini Katsayısı Tahmini, Ege Akademik Bakış, 8(1), 373-393. CR - FORBES, K. J., 2000, A Reassessment of the Relationship Between Inequality and Growth, American Economic Review, 90(4), 869-887. CR - JOHANSEN, S., 1988, Statistical Analysis of Cointegration Vectors, Journal of Dynamics and Control, 12, 231-254. CR - JOSTEN, S. D., 2004, Social Capital, Inequality, and Economic Growth, Journal of Institutional and Theoretical Economics-Zeitschrift Fur Die Gesamte Staatswissenschaft, 160(4), 663-680. CR - KUZNETS, S., 1955, Economic Growth and Income Inequality, The American Economic Review, 45, 1-28. CR - LEE, W. and ROEMER, J. E., 1998, Income Distribution, Redistributive Politics, and Economic Growth, Journal of Economic Growth, 3(3), 217-40. CR - LEE, W. and ROEMER, J. E., 1998, Income Distribution, Redistributive Politics, and Economic Growth, Journal of Economic Growth, 3(3), 217-40. CR - LI, H. and ZOU, H., 1998, Income Inequality is not Harmful for Growth: Theory and Evidence, Review of Development Economics, 2(3), 318-334. CR - PANIZZA, U. (2002). Income inequality and economic growth: Evidence from American data, Journal of Economic Growth, 7(1), 25-41. CR - PARTRIDGE, M., 1997, Is Inequality Harmful for Growth? Comment?. The American Economic Review, 87, 1019-1032. CR - PEROTTI, R. (1993). Political equilibrium, income distribution and economic growth, Review of Economic Studies, 60(4), 755-776. CR - PERSSON, T. and TABELLINI, G., 1994, Is Inequality Harmful for Growth, American Economic Review, 84(3), 600-621. CR - PIKETTY, T., 2014, Yirmi Birinci Yüzyılda Kapital (Çeviren: Hande Koçak). Türkiye İş Bankası Kültür Yayınları, İstanbul. CR - ROBINSON, S., 1976, A Note on the U Hypothesis Relating Inequality and Economic Development, American Economic Review, 66, 437-440. CR - TUIK., 2016, Gelir ve Yaşam Koşulları Araştırması 2015, file:///C:/Users/User/Downloads/Gelir_ve_Ya%C5%9Fam_Ko%C5%9Fullar%C4%B1_Ara%C5%9Ft_21.09.2016.pdf (Access Date: 10 Ocak 2017). UR - https://dergipark.org.tr/tr/pub/jlecon/article/318645 L1 - https://dergipark.org.tr/tr/download/article-file/310372 ER -