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

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Kılıç C., Kurt Ü., Can G.

Yönetim Bilimleri Dergisi, cilt.20, sa.43, ss.171-190, 2022 (Hakemli Dergi) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 20 Sayı: 43
  • Basım Tarihi: 2022
  • Doi Numarası: 10.35408/comuybd.896224
  • Dergi Adı: Yönetim Bilimleri Dergisi
  • Derginin Tarandığı İndeksler: TR DİZİN (ULAKBİM)
  • Sayfa Sayıları: ss.171-190
  • Çanakkale Onsekiz Mart Üniversitesi Adresli: Evet

Özet

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.