The Effect of Trade Openness and Foreign Direct Investment on Income Inequality: An Analysis for Türkiye

Yıl 2025, Cilt: 12 Sayı: 2, 100 - 116, 31.12.2025

Sinem Soyhan , Muhammed Şükrü Mollavelioğlu

https://doi.org/10.34232/pjess.1836802

Öz

This study aims to analyze the effects of trade openness and foreign direct investment on the income share of the top 10 percent in Türkiye. The analysis is framed within the United Nations Sustainable Development Goal 10, which focuses on reducing inequalities within and between countries. Efforts toward achieving this goal by 2030 have highlighted the importance of understanding the determinants of income inequality. In this context, the study investigates the influence of trade openness and foreign direct investment, two factors frequently discussed in the literature as potential drivers of inequality. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach for the period 1990–2024, the study analyzes the long-run relationship between these variables and income inequality in Türkiye. The findings indicate that, in the long run, economic growth and foreign direct investment reduce income inequality, whereas trade openness is found to increase it.

Anahtar Kelimeler

Income inequality , Foreign direct investment , Trade openness

Etik Beyan

This study does not involve any human or animal testing. Therefore, it does not require ethics committee approval. The study complied with scientific and academic ethical guidelines.

Destekleyen Kurum

This study was not funded by any institution or organization.

Teşekkür

We would like to thank the editor and referees for their evaluation of the study.

Ticari Açıklık ve Doğrudan Yabancı Yatırımların Gelir Eşitsizliğine Etkisi: Türkiye Üzerine İnceleme

Öz

Bu çalışma, ticari açıklık ve doğrudan yabancı yatırımların Türkiye’de gelirden en yüksek pay alan %10’luk kesim üzerindeki etkilerini analiz etmeyi amaçlamaktadır. Araştırma, Birleşmiş Milletler Sürdürülebilir Kalkınma Hedefleri kapsamında belirlenen 10. hedef doğrultusunda ülkeler arası ve ülke içi eşitsizliklerin azaltılmasına odaklanmaktadır. 2030 yılına kadar gerçekleştirilmesi hedeflenen bu çabalar, eşitsizliğin azaltılması konusunu kritik hale getirmiştir. Bu amaçla literatürde yer alan ve gelir eşitsizliği üzerinde etkili olduğuna dair kanıtlar bulunan ticari açıklık ve doğrudan yabancı yatırımların etkileri bu çalışma kapsamında incelenmektedir. Çalışmada 1990-2024 döneminde Gecikmesi Dağıtılmış Otoregresif Model (ARDL) sınır testi kullanılarak Türkiye’de ticari açıklık ve doğrudan yabancı yatırımların gelir eşitsizliği üzerindeki etkileri analiz edilmiştir. Elde edilen bulgularda uzun dönemde ekonomik büyüme ve doğrudan yabancı yatırımların gelir eşitsizliğini azalttığı, buna karşın ticari açıklığın eşitsizliği artırdığı sonucuna ulaşılmıştır.

Anahtar Kelimeler

Gelir Eşitsizliği , Doğrudan Yabancı Yatırımlar , Ticari Açıklık

Etik Beyan

Bu çalışma herhangi bir insan veya hayvan deneyi içermemektedir. Bu nedenle etik kurul izni gerektirmemektedir. Çalışmada bilimsel ve akademik etik kurallara uyulmuştur.

Destekleyen Kurum

Bu çalışma herhangi bir kurum veya kuruluş tarafından fonlanmamıştır.

Teşekkür

Çalışmanın değerlendirilmesinde editör ve hakemlere teşekkür ederiz.

Kaynakça

• Aghion, P. & Howitt, P. (2009). The economics of growth. Cambridge: MIT Press.
• Akalin, G. (2020). Does foreign direct investment and trade openness reduce income inequality? The case of Turkey. International Conference on Economics September 10-12, 2020; Eskisehir Osmangazi University, Eskişehir, Turkey
• Arshad, S. & Islam, A. N. M. (2020). Impact of foreign direct investment inflow on income inequality in South and Southeast Asia. Global Business & Economics Anthology, 1.
• 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. https://doi.org/10.1016/j.econmod.2013.09.051
• Babatunde, M. A. (2018). Foreign direct investment and income inequality in Nigeria. International Journal of Economic Development, 11(2), 266-315.
• Bayraktar, Y., Özyılmaz, A. & Toprak, M. (2019). Doğrudan yabancı yatırımlar ve gelir eşitsizliği ilişkisi: Türkiye deneyimi, Akademik Hassasiyetler, 6(12): 445-475.
• Bhandari, M. P. (2024). What is next for the sustainable development goals, what are the challenges concerning SDG 10—reduced inequalities?. Sustainable Earth Reviews, 7(1), 23.
• Borjas, G. J., Freeman, R. B. & Katz, L. F. (1991). On the labor market effects of immigration and trade, NBER Working Papers Series, Working Paper No: 3761, Massachusetts Avenue Cambridge.
• Brown, R. (2017). The inequality crisis: The facts and what we can do about it. Bristol: Policy Press. https://doi.org/10.2307/j.ctt22p7kb5
• Bozkurt, E., Altıner, A. & Topçuoğlu, Ö. (2020). Türkiye’de Doğrudan Yabancı Sermaye Yatırımlarının Gelir Eşitsizliği Perspektifinden Analizi. Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, 8(2), 79-97.
• Cengiz, V. & Demir, S. (2023). Trade openness, financial openness and income inequality: Empirical evidence for MIST countries/ Ticari açıklık, finansal açıklık ve gelir eşitsizliği ilişkisi: MIST ülkeleri için ampirik bulgular. Uluslararası Ekonomi İşletme ve Politika Dergisi, 7(1), 16-27. https://doi.org/10.29216/ueip.1181188
• Cho, H. C. & Ramirez, M. D. (2016). Foreign direct investment and income inequality in southeast Asia: a panel unit root and panel cointegration analysis, 1990–2013. Atlantic Economic Journal, 44, 411-424. DOI 10.1007/s11293-016-9521-7
• Choi, C. (2006). Does foreign direct investment affect domestic income inequality?. Applied Economics Letters, 13(12), 811-814.
• Dickey, D. A. & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American statistical association, 74(366a), 427-431.
• Dorn, F., Fuest, C. & Potrafke, N. (2022). Trade openness and income inequality: New empirical evidence. Economic Inquiry, 60(1), 202-223. https://doi.org/10.1111/ecin.13018
• Faustino, H. C. & Vali, C. (2011). The effects of globalisation on OECD income inequality: A static and dynamic analysis. DE Working Paper No. 12/2011. Universidade de Évora, Departamento de Economia.
• Feenstra, R. C. & Hanson, G. H. (1997). Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras. Journal of international economics, 42(3-4), 371-393.
• Franco, C. & Gerussi, E. (2013). Trade, foreign direct investments (FDI) and income inequality: Empirical evidence from transition countries. The Journal of International Trade & EconomDevelopment, 22(8), 1131-1160. https://dx.doi.org/10.1080/09638199.2011.647048
• Furusawa, T., Konishi, H. & Tran, D. L. A. (2020). International trade and income inequality. The Scandinavian Journal of Economics, 122(3), 993-1026. https://doi.org/10.1111/sjoe.12360
• Gam, T. T. H., Oanh, D. L. K. & Dang, N. M. B. (2023). The impact of foreign direct investment on income inequality in developing countries: The Bayesian approach. Jurnal Ekonomi & Studi Pembangunan, 24(1), 127-143.
• Gemicioğlu, S. (2016). Gelir eşitsizliği ve ticari açıklık arasındaki ilişkinin incelenmesi. (Yüksek lisans tezi, Ankara Üniversitesi). http://hdl.handle.net/20.500.12575/85254
• Han, V. (2022). BRICS-T ülkelerinde ticari dışa açıklık ve gelir eşitsizliği arasındaki ilişkinin incelenmesi: Panel VAR yaklaşımı. Ekonomi Politika ve Finans Araştırmaları Dergisi, 7(3), 677-696. https://doi.org/10.30784/epfad.1062453
• Hossain, R., Roy, C. K. & Akter, R. (2022). Economic growth, FDI, trade openness, and inequality: Standing of Asian economies. Asian Dev Policy Rev, 10(4), 317-330. https://doi.org/10.55493/5008.v10i4.4691
• Joyce, J. P. (2024). The impact of FDI income on income shares in home countries. The Journal of Economic Inequality, 22(2), 265-284. https://doi.org/10.1007/s10888-023-09592-8
• Khan, I., Nawaz, Z. & Saeed, B. B. (2021). Does trade openness and FDI reduce inequality? Evidence from South Asia. International Journal of Finance & Economics, 26(4), 6459-6470. https://doi.org/10.1002/ijfe.2131
• Le, Q. H., Do, Q. A., Pham, H. C. & Nguyen, T. D. (2021). The impact of foreign direct investment on income inequality in Vietnam. Economies, 9(1), 27. https://doi.org/10.3390/economies9010027
• Li, Z., Lunku, H. S., Yang, S. & Salim, A. (2024). The dynamic interplay of foreign direct investment and education expenditure on Sub-Saharan Africa income inequality. International Economics and Economic Policy, 21(3), 593-616. https://doi.org/10.1007/s10368-024-00614-y
• Lyon, S. G. & Waugh, M. E. (2018). Redistributing the gains from trade through progressive taxation. Journal of International Economics, 115, 185-202. https://doi.org/10.1016/j.jinteco.2018.09.008
• Mahesh, M. (2011). The effect of trade openness on income inequality: Evidence from developing countries. MSc Dissertation, Department of Economics, University of Essex. http://dx.doi.org/10.2139/ssrn.2736721
• Mdingi, K. & Ho, S. Y. (2021). Literature review on income inequality and economic growth. MethodsX, 8, 101402. https://doi.org/10.1016/j.mex.2021.101402
• Mitra, R. & Hossain, M. S. (2018). Does trade openness increase income inequality in the United States?. The Empirical Economics Letters, 17(10), 1185-1194.
• Muzammil, M., Amir-ud-Din, R. & Khan, R. E. A. (2018). How do the technology transfer and trade openness affect income inequality: A panel data analysis?. Kashmir Economic Review, 27(2).
• Nam, H. J., Frijns, B. & Ryu, D. (2024). Trade openness and income inequality: The moderating role of institutional quality. Global Finance Journal, 60, 100959. https://doi.org/10.1016/j.gfj.2024.100959
• Nguyen, V. B. (2023). The role of digitalization in the FDI–income inequality relationship in developed and developing countries. Journal of Economics, Finance and Administrative Science, 28(55), 6-26.
• Nkoro, E. & Uko, A. K. (2016). Autoregressive Distributed Lag (ARDL) cointegration technique: Application and interpretation. Journal of Statistical and Econometric methods, 5(4), 63-91.
• Ogede, J. S., Maku, O. E., Oshinowo, B. O. & Ologundudu, M. M. (2022). Trade openness, FDI and income inequality: New empirical evidence from Nigeria. Economic Studies & Analyses/Acta VSFS, 16(1).
• Ordu, S. & Songur, M. (2023). Yenilenebilir enerji ile istihdam arasındaki ilişki: Türkiye için ARDL Sınır Testi yaklaşımı. Alanya Akademik Bakış, 7(2), 741-754. https://doi.org/10.29023/alanyaakademik.1126460
• Pesaran, M.H. & Shin, Y. (1999). An autoregressive distributed lag modelling approach to co-integration analysis. S. Strom (Ed.) Econometrics and Eonomic Theory in the 20th Century: the Ragnar Frisch Centennial Symposium. Cambridge: Cambridge University Press. https://doi.org/10.1017/CCOL521633230.011
• Pesaran, M. H., Shin, Y. & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of applied econometrics, 16(3), 289-326.
• Phillips, P. C. & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335-346. Polacko, M. (2021). Causes and consequences of income inequality-an overview. Statistics, Politics and Policy, 12(2): 341-357. https://doi.org/10.1515/spp-2021-0017
• Rezk, H., Amer, G., Fathi, N. & Sun, S. (2022). The impact of FDI on income inequality in Egypt. Economic change and restructuring, 55(3), 2011-2030. https://doi.org/10.1007/s10644-021-09375-z
• Sohail, H. M., Huang, Z., Ullah, M., Nazir, H. R., Haron, N. F. & Mariev, O. (2025). Driving sustainable economic growth through the energy Indicators: Insights from the ARDL and machine learning approaches. Energy Strategy Reviews, 62, 101924. https://doi.org/10.1016/j.esr.2025.101924
• Squalli, J. & Wilson, K. (2011). A new measure of trade openness. The World Economy, 34(10), 1745-1770. https://doi.org/10.1111/j.1467-9701.2011.01404.x
• Topuz, S. G. & Dağdemir, Ö. (2020). Analysis of the relationship between trade openness, structural change, and income inequality under Kuznets curve hypothesis: The case of Turkey. The Journal of International Trade & Economic Development, 29(6), 647-664. https://doi.org/10.1080/09638199.2019.1711146
• Vergara, D. (2022). Do policies and institutions matter for pre-tax income inequality? Cross-country evidence. International Tax and Public Finance, 29(1), 30-52.
• Vo, T. Q. & Ho, H. T. (2021). The relationship between foreign direct investment inflows and trade openness: Evidence from ASEAN and related countries. The Journal of Asian Finance, Economics and Business, 8(6), 587-595.
• UNDP (2025). https://www.undp.org/sustainable-development-goals/reduced-inequalities (Erişim Tarihi: 22.12.2025)
• Xu, C., Han, M., Dossou, T. A. M. & Bekun, F. V. (2021). Trade openness, FDI, and income inequality: Evidence from sub‐Saharan Africa. African Development Review, 33(1), 193-203. DOI: 10.1111/1467-8268.12511
• Yuldashev, M., Khalikov, U., Nasriddinov, F., Ismailova, N., Kuldasheva, Z. & Ahmad, M. (2023). Impact of foreign direct investment on income inequality: Evidence from selected Asian economies. Plos one, 18(2), e0281870. https://doi.org/10.1371/journal.pone.0281870
• Zakaria, M. & Fida, B. A. (2016). Trade openness and income inequality in China and the SAARC Region. Asian‐Pacific Economic Literature, 30(2): 33-44. https://doi.org/10.1111/apel.12152
• Zakari, Y. H. & Shuaibu, Y. U (2024). Does foreign direct investment reduce income inequality? Empirical evidence from Nigeria, Journal of Management Science and Career Development.