IS KUZNETS’ INVERTED-U HYPOTHESIS VALID FOR TURKEY?: ARDL BOUNDS TESTING APPROACH

Creative Commons License

Kılıç C., Kurt Ü., Can G.

Yönetim Bilimleri Dergisi, vol.20, no.43, pp.171-190, 2022 (Peer-Reviewed Journal) identifier

  • Publication Type: Article / Article
  • Volume: 20 Issue: 43
  • Publication Date: 2022
  • Doi Number: 10.35408/comuybd.896224
  • Journal Name: Yönetim Bilimleri Dergisi
  • Journal Indexes: TR DİZİN (ULAKBİM)
  • Page Numbers: pp.171-190
  • Çanakkale Onsekiz Mart University Affiliated: Yes

Abstract

Kuznets (1955) stated that in the early stages of a society's economic development, income

inequality would increase with economic growth, and in the later stages of economic growth,

income inequality would decrease. The aim of this study is to analyze whether Kuznets (1955)

hypothesis was valid for the Turkish economy with the help of ARDL boundary test approach

using data from 1987-2019 period. As a result of the analysis, it was found that there is a

negative relationship between economic growth and income inequality. These results indicate

that Kuznets' inverted-U hypothesis is not valid in Turkey, but rather that the relationship

between economic growth and income inequality is similar to the U-shape.