The Relationship of Financial Liberalization and Income Distribution: Panel Quantile Regression Analysis for G10 Countries

Abstract

The aim of this study is to examine the effect of financial liberalization and selected control variables (trade openness, economic growth, R&D expenditures and public expenditures) on income inequality in selected G10 countries between 1997-2019. On income inequality data obtained from the Standardized World Income Inequality Database and the effect of trade, economic growth, R&D expenditures and public expenditures control variables, as well as Smt (stock market turnover rate) and Smc (stock exchange capitalization rate) has been researched by using the panel quantile regression model. When the panel quantile results are examined, it has been determined that trade openness, smt, R&D expenditures and public expenditures have a reducing effect on income inequality, while economic growth and Smc have an increasing effect on income inequality. Empirical results show that, in accordance with the literature, the uncertain effect of financial liberalization on income inequality continues. Contrasting results were obtained on income inequality of the two selected financial liberalization variables. Contrasting results were obtained on income inequality of the two selected financial liberalization variables. In addition, as income inequality increases in selected developed countries, the distorting effect of economic growth on income distribution increases. On the other hand, it is seen that government expenditures have a regulatory effect on income distribution, while R&D expenditures have a regulatory effect on inequality, and R&D expenditures have the highest regulatory effect on income distribution at a high level of inequality.

Keywords

• Income inequality
• financial liberalization
• economic growth
• panel quantile analysis

Finansal Liberalizasyon ve Gelir Dağılımı İlişkisi: G 10 Ülkeleri için Panel Kantil Regresyon Analizi

Öz

Bu çalışmanın amacı, seçilmiş G10 ülkelerinde finansal serbestleşmenin ve seçilen kontrol değişkenlerin (ticari açıklık, ekonomik büyüme, Ar-Ge harcamaları ve kamu harcamaları) gelir eşitsizliği üzerindeki etkisinin 1997-2019 yılları arasında incelemektir. Panel kantil regresyon modeli kullanılarak Standartlaştırılmış Dünya Gelir Eşitsizliği Veri tabanınından elde edilen gelir eşitsizliği verisi üzerinde finansal serbesleşme değişkeni olarak seçilen Smt (borsa ciro oranı) ve Smc (borsa kapitalizasyon oranı)’nin yanında ticaret, ekonomik büyüme, Ar-Ge harcamaları ve kamu harcamaları kontrol değişkenlerinin etkisi araştırılmıştır. Panel kantil sonuçları incelendiğinde, ticari açıklık, smt, Ar-Ge harcamaları ve kamu harcamalarının gelir eşitsizliğini azaltıcı bir etkiye sahip oldukları, ekonomik büyümenin ve Smc’nin ise, gelir eşitsizliğini arttırıcı bir etkiye sahip oldukları tespit edilmiştir. Ampirik sonuçlar, literatüre uygun olarak finansal serbestleşmenin gelir eşitsizliği üzerindeki belirsiz etkisinin devam ettiğini göstermektedir. Seçilen iki finansal serbestleşme değişkenlerinin gelir eşitsizliği üzerinde birbirinin zıttı sonuçlar elde edilmiştir. Ayrıca seçilen gelişmiş ülkelerde gelir eşitsizliği arttıkça ekonomik büyümenin gelir dağılımı üzerindeki bozucu etkisi artmaktadır. Diğer taraftan hükümet harcamalarının gelir dağılımında düzenleyici bir etkiye sahip olduğu görülürken, Ar-Ge harcamalarının da eşitsizlik üzerindeki düzenleyici etkisinin olduğu görülmektedir ve Ar-Ge harcamaları yüksek eşitsizlik seviyesinde gelir dağılımı üzerinde en yüksek düzenleyici etkiye sahiptir. 

Anahtar Kelimeler

• gelir eşitsizliği
• finansal serbestleşme
• küreselleşme
• ekonomik büyüme
• Panel Kantil Analizi

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